In times of increasing home loan interest rates wouldn’t it be great if your mortgage provider could give you some mortgage repayment relief…!
Well, no need to wish any longer; it’s a reality.
If you have 20% equity or more in your home or investment property, are not in arrears and have a good credit history, a Cash Flow Manager Home Loan lets you reduce your home loan repayments for between 2 to 4 years
In other words, your monthly mortgage repayments can be reduced significantly to cater for any number of household needs or residential property cash flow strategies.
You now have extra choices in the way you manage your finances.
Maybe you’re starting a family and one of you will be taking time off from work, or you have older children heading for private school or university, or you want to take a year off to do some post graduate study.
A ‘Cash Flow Manager mortgage loan could give you the financial flexibility you want in an environment of rising interest rates.
Can you imagine the ‘cash flow’ benefits by cutting your mortgage repayments for between a full 24 to 48 months?
You can even roll in any personal loans and credit cards in at the low Cash Flow Manager interest rate as well.
It’s the cashflow management loan that puts you in control.
As an example, the monthly loan payments over say, the first 2 years are interest only and based on a payment rate which is 3.1%* lower than the standard variable rate. The monthly interest charge is calculated at the standard variable rate. (Currently 5.99%* p.a.) payment rate, 9.09%*p.a. standard variable rate and comparison rate of 9.09%*p.a.
The difference between the actual payments made and the interest owed under the standard variable rate, being unpaid interest of 3.1%, is capitalised (added) to your outstanding loan amount each month.
The standard variable rate is still the basis of calculating your monthly interest charge each month and is based on your outstanding loan amount. At the end of the initial two year period, your payments revert to the standard repayment based upon the higher loan balance at that time (due to the capitalisation of the unpaid interest each month).
This loan product is also designed for residential property investors who wish to turn cash flow negative property investments into cash flow neutral &/or positive investments. In the early years, the borrower capitalizes a portion of interest payable to the loan. Typically this amounts to 4% in Year 1, 3% in Year 2, 2% in Year 3 and 1% in Year 4.
There are no Margin Calls or Mortgage Insurance required, no matter what happens to the value of the property. The interest charged is fully deductible even though the investor cash outflow is substantially less.
If you wish to discuss a Cash Flow management home or investment mortgage, call Assent Mortgage Finance now on 1300 72 86 96.
* Fees & Charges apply to these loans / Note that all interest rates and credit requirements need to be confirmed with