NEED A DEPOSIT??? APPLY FOR A PERSONAL LOAN
A personal loan can be used towards a deposit for a home-loan, caravan loan , or any other purchase where you are short of cash.
Using a personal loan will cost you less in interest than you think. Various factors such as employment duration, employment status, credit history, and etc.. will affect your rate. Let’s look at the following example, assuming you borrow $20,000 with a personal loan over 5 years at 14%, you’ll only pay an extra $22 a week in interest than if you borrowed an additional $20,000 over 5 years at a home loan rate of 5%. That works out to be $1,320 more in interest over the 5 years.
Therefore, a personal loan rated at 14% (in the above example) due to its short term nature doesn’t have a big impact on your total debt when compared with a home loan rate of 5%. A personal loan doesn’t affect your cash flow and most of your repayments will be paying off the debt.
Some personal loans may have minor additional costs such as establishment fees, monthly fees and, in some cases, early repayment fees.
Give us a call to find out about a personal loan option for your next deposit and purchase.
