Benefits of Debt Consolidation:
- It allows you to save on interest payments – it is proven that your home loan will be one of the lowest rates you have therefore it makes sense for you to take advantage of the lower rate.
- It means you save on monthly account keeping fees – it is likely that every account you have will charge you monthly account fees. By moving all of your debt into a mortgage you will only be paying one account fee. Also, by having many debts if you miss a payment you will be incurring penalty fees. With some of the current mortgage loans monthly fees do not apply and this makes it even more viable.
- Less administrative hassle – you now only have to make one monthly repayment rather than multiple payments to all the lenders you owe.
- It will improve your credit record – by making only one payment a month it is far less likely that you will miss a repayment.
Process of debt consolidation
The more information Time has at hand, the better the opportunity of presenting your scenario and having your application approved. Our Time Mortgage Expert will work with you to ensure that the correct processes are followed to ensure the outcome is favourable from the lender.
The valuation of your property plays a big role in establishing the amount of equity in your property. Having this completed upfront improves your case scenario with the lender.
The lender will require certain documents for Time Home Loans to proceed with lodging your application for debt consolidation.
- Rates notice
- Superannuation statement
- PAYG summaries
- Copy of your 100 point ID (and spouses / partners if applicable)
- Previous 6 month statements for any debts being refinanced
- Completed application form
- A breakdown of all your outstanding debts, account numbers, balance and instalments
- Proof of income
Feel free to make contact with one of our mortgage advisers if you would like to explore this option in detail.