Indeed, by lowering your monthly payments, the repurchase of credits increases your “remainder to live”. In this way, not only will you have more money to make your daily purchases or build up savings, but in addition, you will lower your debt ratio. This will allow you to take out a new loan to finance an additional investment.
Why are we doing a credit consolidation?
Whether you have the need to make a credit consolidation or you want to make a loan repurchase all the reasons are valid. Each borrower is able to ask the question. The end result is the same in all cases your new monthly payment will be adapted to your income.
Whether you buy a home loan or buy a consumer loan, each borrower must find his solution in this loan consolidation operation.
In view of the sharp drop in interest rates in 2019, your new rate will necessarily be lower than the interest rate you currently have. If this is not the case then ask yourself the question; why I want to do a loan consolidation.
Your Good Finance broker will tell you why to buy a loan
Reduce your monthly payments
The dream of any borrower is to be able to borrow without having to pay back the key! But it is not possible and you know it well.
On the other hand, lowering your monthly payments is accessible to any borrower. Thanks to the grouping of loans you can reduce your monthly loan payments. Because the principle of loan consolidation is to consolidate all your monthly payments into one. You will have a better credit rate and a new repayment term.
For example, you have several consumer credits whose duration is between 3 years and 7 years. Extending the repayment period over 12 years for a tenant and 15 years for a landlord reduces their monthly payments. The new monthly payment for your credit consolidation will be adapted to your income and your repayment capacity.
Consolidate your credits into one loan
You have at least 1 credit and a maximum of 20 credits your broker specializing in loan repurchase consolidates all your credits into 1 single loan. Whether it is a home loan, personal loan, car loan or revolving credit, all of its credits are cleared and they will be replaced by a single credit. No more headaches and difficult management and no longer knowing at the end of the month where you are in your repayments. Simplify your life and consolidate your loans into one credit.
Lower your debt ratio to finance a property
The debt ratio determines your debt in relation to your income. The monthly loan payments + the rent or the mortgage which are divided by the income determine your debt ratio.
Example : monthly payment 650 $ + rent 730 $ / income 3000 $ = debt ratio 46%.
You are a tenant and you have the project to buy your property, it is very good, but alas it is not possible because your debt ratio is higher than 33%. The same goes for the owner who wants a second home by the sea, in the mountains or in the countryside, but who also has too high a debt ratio.
You must, therefore, combine your credits in order to lower your repayment and therefore your debt ratio so that your new monthly payment linked to your buyout + the monthly payment of the real estate project does not exceed 33% of the debt. You will be able to buy the property for which you fell in love without going into debt.
- Increase your rest to live
The rest is the money you have left after your credits plus your rent or mortgage are deducted from your income.
Example: monthly payment $ 650 + rent $ 730 – income $ 3,000 = living room $ 1,620
We often speak of purchasing power, the fact of increasing our living income allows us to recover purchasing power.