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Pre Approved Finance
Buying my first home
Invest in Property
copyright © 2007 Pre Approved Finance




Tim & Claire wanted to consolidate their personal debt and refinance their existing mortgage.

They purchased their home 6 years ago and with recent capital growth in their area they believed they had enough equity to bundle their credit cards and improve their cash flow.

Scenario Example/ Home Value $500,000
Mortgage $290,000 repayments $1540...
Credit Card 1/ $11,500 just minimum repayments $345 pm [ not paying the balance off ]
Credit Card 2/ $9,500 $285 pm
Car Loan balance $12,000 repayment $300 pm
Total monthly repayments $2470
Total debts consolidated = $323,000

When refinanced as one mortgage debt new repayments approx. $1640 pm

A cash flow saving of $830 per month [ no more credit cards or car loan ]

Lets go a step further. As an example of how they can use some of this cash saving to pay off their mortgage faster…we use half of the saving $430 and use this to make extra monthly home loan repayments.

This would reduce the 30 year loan down to 20 years approx. interest saving of $100,000

These figures are only an indicative guide and each individual should make their own enquiries regarding their own position.