Debt Consolidation
Debt consolidation or “Bill Reducer” can be a great way for business owners who also own property (e.g. a house) to save money on their repayments.
The process is to combine their different debts, e.g. personal, business, or both into their home loan.
Benefits:
- It can allow them to have their different debts at home loan interest rates
- Shorter or flexible terms can be set up to make the loan easier to pay off faster
- It can provide a lower interest rate
- The business can be set up as the borrower, or multiple accounts set up
What types of debts can possibly be refinanced?
Property loans, overdrafts, car loans, business loans, vehicle loans, equipment loans, hire purchases.
What is the application process?
We offer a mortgage broker refinancing service. We’ll work with the client and a bank or other lender to find a solution to refinance debts into the home loan. We may be able to set up different facilities where the business is the borrower for one facility, and personal for the other, making it easier hopefully for the accountant to process tax returns.
What are the terms of the offer?
These will be advised later usually by the lending institution. Different loan terms, fees and interest rates can apply. Typically, the interest rate provided will be a home loan interest rate. Some loans can cost slightly more – it depends on various factors.