Debt Consolidation Loans

Debt consolidation can help reduce the stress of multiple debts and interest rates. We explain how it typically works.

Paying off more than one debt at a time is not uncommon. But if you are struggling to balance your debt repayments, debt consolidation may well be worth considering.

Debt consolidation is bringing all your existing debts together into one new debt, which can help you manage your repayments and give you a clearer picture of your financial future. You typically do this by taking out a new personal loan to repay your other existing debts, and then paying this new loan back over a set term.

The key advantages of consolidating your debt are:

• A potentially better (lower) interest rate
• Repayments that are easier to manage
• A means of providing a clear timeline outlining when you will be debt-free

Taking out a personal loan can also help with your budgeting. Instead of just having to make minimum repayments as you do on credit cards, you’ll have to make set repayments that cover both the loan amount and interest, which you know will end at a certain date.

At First Grade Financial Solutions, we understand that debt consolidation is tricky and is the overwhelming debts are stressful, but we are here to help. Contact us on 0417501506.

We also have available some funders that can assist with the short-term lending, when in some cases the approved loan funds may be a little short to complete the project in its finality.

Building or construction loans generally operate as an interest-only facility with a variable interest rate during the construction period, before reverting to the standard home loan package you have negotiated with your lender. During the building or construction period, you only pay interest on the part of the home loan that has been drawn down or paid out.

Building or construction loans may vary slightly state to state, so speak to us for more information.

• Variable Rate: The loan product is usually at a variable rate, unless the initial purchase of the land will be un-developed for an agreed period of time, at which time a fixed rate can be negotiated. During the construction stage, the Interest rate is again usually variable.
• Fixed Rate: Depending on where we source the funds, and subject to the development being over a period of less than 6 months, you have the option of a Fixed Interest rate.
• Short Term or Mezzanine Debt: Funds made available to allow for the completion of the project when the time of the completion has become an issue.
• Loan Amounts: Depending on the project and funds and/or equity to be placed into the project.
• Repayment Terms: The construction loan should be repaid at the completion of the project, by either re-finance or sale of the development.
• Security: Fully secured by Commercial, Retail, Industrial and Residential Property. With regards to Short term lending, a caveat or second mortgage may only be required.
• Repayment Options: Either Interest Only on a monthly basis, or the Interest can be capitalised into the total loan amount.
• Loan Terms: From 6 months to 3 years.

First and Second Mortgage

When most people purchase a home or property, they take out a home loan from a lending institution which uses the property as collateral. This home loan is called a mortgage, or more specifically, a first mortgage. The borrower is required to repay the loan in monthly instalments made up of a portion of the principal amount and interest payments. Over time, as the homeowner makes good on his/her monthly payments, the value of the home also appreciates economically. The difference between the current market value of the home and any remaining mortgage payments is called home equity.

A homeowner may decide to borrow against his/her home equity to fund other projects or expenditures. The loan he/she takes out against his/her home equity is known as a second mortgage, as he already has an outstanding first mortgage. The second mortgage is a lump sum of payment made out to the borrower at the beginning of the loan. Like first mortgages, second mortgages must be repaid over a specified term at a fixed or variable interest rate, depending on the loan agreement signed with the lender. The loan must be paid off first before the borrower can take on another mortgage against his home equity.

Since the first or purchase mortgage is used as a loan for buying the property, many people use second mortgages as loans for large expenditures that may be very difficult to finance. For example, people may take on a second mortgage to fund a child’s college education, or to purchase a new vehicle. Second mortgages also can be a method to consolidate debt by using the money from the second mortgage to pay off other sources of outstanding debt, which may have carried even higher interest rates.

First Grade Financial Solutions are experts in first and second mortgage, so give us a call on 0417501506 and let’s see what we can do for you!

Pre-approval on your loan

If you would like more of a bargaining power when you buy your new car, why not get pre-approval on your loan? Pre-approval gives you piece of mind knowing exactly what you can afford and dramatically increases your bargaining power in competitive markets!

Fixed repayments

Do you like the certainty of fixed monthly repayments for the life of the loan? We do! That is why a range of our loans have a fixed interest rates, which means you will not be subject to nasty interest rate rises.

Quick and easy

With the help of First Grade Financial solutions, we can get loan approval within hours and your money within days. The application form only takes very little time and is easy to complete.

Whatever your circumstances, if you are looking for a personal loan, why not speak to our team at First Grade Financial Solutions. We are more than happy to help!