Speciality Home Loan Savings Case Study
John and Sally purchased their home 5 years ago. They were also paying off a motor vehicle loan, a personal loan for a holiday they took the family on last year and three credit cards. John and Sally were finding it increasingly difficult to manage their money and their repayments. They were months behind on their monthly credit card repayments and both their credit ratings were now impaired.
A snapshot of their loan accounts revealed the following:
|Loan Account||Balance||Minimum Monthly Repayment|
|Mortgage Vehicle Loan||16,500||300|
|3 Credit Cards||40,000||1,200|
John and Sally's minimum monthly repayments on their loan accounts totalled $4,550 per month
Due to John and Sally's unique financial circumstances they were unlikely to meet or 'conform' to the rules of traditional home loan lenders. Fox Symes provided them with a new home loan.
John and Sally's new home loan for $490,000 allowed them to consolidate all their debts. This resulted in John and Sally now making one repayment per month rather than multiple repayments.
John and Sally's minimum monthly repayment with their new home loan was reduced from $4,550 per month to $3,250 per month thus saving them $1,300 per month.