Increasing your home buying range
Recently I helped first home buyers extend their borrowing range to help them get the home they were after.
When they came to see me, they had $24,000 worth of consumer debt at a relatively high interest rate. This meant that they were restricted in the amount they could borrow, and therefore the house price level that they were able to purchase at.
At Loan Market we offer a range of lending and insurance options so we were able to help these first home buyers with a debt consolidation loan. These loans for the most part look to restructure the current consumer debt - hire purchases, loans, credit cards, store cards, etc into one loan at a lower rate, saving money and making repayments easier to manage.
In this example, the consumer debt was $24,000 which was costing them $191 per week in repayments at an average interest rate of 17.95%. The bank had approved them to buy a home with a maximum price of $327,000 which just wasn’t quite enough for what they were looking at.
We worked through their options and ended up helping them with a debt consolidation loan, which lowered the interest rate to 13.95% and restructured the debt, which reduced their repayments to $128 per week, leaving them with more money left over each week to put towards mortgage repayments and giving the bank confidence to lend them more.
This then allowed them to purchase a house with a maximum price of $365,000.
This was a fantastic result for my clients, and another first home buyer success story.
I am running a first home buyers evening on the 21st of March, 2018 in Christchurch. If you are interested, please keep an eye on my Facebook page for more information and to register.
If you are outside of Christchurch, I do work nationwide and am more than happy to help if you’d like to get in touch. You can give me a call direct on 027 886 4934. Alternatively you can email me at firstname.lastname@example.org