Rescue Credit can assist you with getting a home loan because we are accredited with dozens of lenders who can assist with all different types of situations.
We have listed below the various home loan products that our customers need on a weekly basis. Don’t worry if your reason for needing a home loan is not listed on this page, it doesn’t mean we can’t help.
Obviously, the less risk you or the property you’re buying/refinancing is to the bank the better the interest rate and home loan product you would be offered.
Home Loan Refinance
Rescue Credit can assist you with refinancing your existing home loan for whatever purpose you need. Always remember that you should be in a better off financial situation when refinancing your home loan, be it for a cheaper interest rate, consolidating several debts into a single payment or increasing your wealth such as drawing down a deposit for an investment property.
If your end debt increases as a result of the home loan refinance then make sure your payments increase to compensate for the extra interest you will end up paying as a result of the increased debt.
Some people refinance to get access to more suitable facilities such as a Line of Credit or Offset Account. Just make sure that you are not paying thousands of dollars in fees during the refinance to access loan facilities that may already exist with your current bank.
Click Here to enquire online about a suitable home loan refinance or to discuss your situation with us.
Home Loan Debt Consolidation
Consolidating your existing debts into your home loan can be a suitable strategy if it reduces several payments into a single amount and increases your cash flow. The downside to consolidating your debts is that it increases your home loan debt which means more interest paid and a longer term to pay it over.
If you decide to refinance or consolidate your debts into your home loan, make sure that you also increase the your scheduled loan payments to pay off the loan over the same amount of time as your previous loan. By doing this you will reduce the amount of interest that you pay compared to sticking to the minimum payments.
Click Here to enquire online about a suitable Home Loan Debt Consolidation strategy or to discuss your situation with us.
Bad Credit Home Loan
A bad credit home loan is suitable for people who cannot get a bank loan using the main banks due to defaults, bankruptcy or a challenging income/employment situation.
Sometimes a bad credit home loan can be used as a stepping stone to get you into the property market or to refinance or consolidate other debts to free up your cash flow, provide a cash injection to your business or to draw down on some equity to purchase another property or business.
The good news is that a bad credit home loan doesn’t have to last forever and as long as you keep your credit rating clean and make every home loan repayment when it falls due (and on time) then we can look at refinancing you out of the bad credit home loan provider and back into the main banks again at a later date.
You can expect to pay a higher interest rate for a bad credit home loan and this is because you are a greater risk to the bank however as mentioned above, it doesn’t have to be forever.
Home Loan Redraw
A home loan redraw is used when you want to draw down on the available equity in your property to use as a deposit to purchase another property, a business, provide capital injection or for any other wealth creation purpose.
You should consider the risk-to-reward ratio when making this type of investment and ensure that you consider and plan for the worst case scenario with the investment you want to make. If the worst case scenario is manageable and acceptable to you, then at least you have done your home work and worked the numbers.
Things that we have seen go wrong with home loan redraws and the associated investments include:
A Long and unexpected vacant tenancy on the business or property that was purchased
Expected income from the purchased business/property/investment was not met
Anticipated expenses of the business/property/investment purchased were under-estimated
Expected income or employment from the borrower(s) has stopped or reduced due to redundancy, bad health, unexpected injury or family separation
Not enough diversification – meaning that the risk was not spread across different types of investments. This is the same as putting all your eggs into the same basket
The figures provided to you with the business/property/investment that you purchased was misrepresented and the purchaser did not look closer into it or at least get a professional assessment or opinion from an independent accountant, lawyer or financial advisor
This list is just some of the many things that can go wrong when purchasing an investment using a home loan redraw and when it does go wrong, YOU are the bunny who can end up paying the price and consequence.
Make sure that you do your research and get a professional opinion before making such a large commitment.
Home Loan Application Checklist
As a general guide you will need the following bits of information in support of your home loan application:
A fully completed home loan application form (provided by Rescue Credit)
- Your last 90 days statements for any debts that you want to consolidate such as credit card or personal loan statements
- Your latest council rates notice
- Two recent payslips or your latest PAYG Group Certificate
- A certified copy of your drivers license or passport
- Your last six months home loan statement
- Your latest water rates notice
- Any other information the credit provider may ask for or want to verify
You won’t need these documents when applying online but they will be needed later on so the sooner you prepare them the quicker we can assist you.
In conclusion, whatever type of home loan you’re looking for Rescue Credit have access to a wide range of lenders and we will work with you in getting the most appropriate home loan solution.