Bella is divorced and has had a lot of ups and downs with helping her children with money. Bella is in her fifties now and has a loan of $250,000. Part of the loan was for investment $120,000 and the other $130,000 is her personal home loan debt.
Bella has a great job and is on a salary of over $90,000 pa. Bella makes extra repayments on her loan; however something always comes up and she then uses redraw and takes the extra funds out. Bella has asked InShape Home Loans if they can help her find a way to pay off her loan, as Bella does not want to have a debt when she is in her 60’s.
InShape Home Loans worked with Bella to see how much she would like to pay on her loan, without hardship or going without anything she wants. Bella wants a loan where she cannot redraw any extra but does not necessarily want a fixed loan.
InShape Home Loans and Bella decided on an interest only loan for 5 years for the investment $120,000 debt and a very good low variable rate for Bella’s $130,000 personal debt but over a ten year term.
This provided Bella with higher repayments without any redraw available unless she paid more, however her loan would be paid off in 10 years. Bella was very happy with this as she always pays her bills but if additional cash is available it always got spent and in Bella’s words: “unwisely on junk.”
Another happy InShape Home Loans client.
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