Tips: SA Home Loans
For most, a homeloan represents the single largest financial commitment weâ€™ll make in our lives. But, often we think of our homeloans to be one huge debt, and fail to see the financial benefits it offers.
Your mortgage is a Secured Loan â€“ secured against your property. This means that as your property value increases, the total amount the Bank is willing to offer you will also increase â€“given you are able to afford the repayment of cause.
This is great news to Business owners who have a great demand for cash flow to maintain their companies. The sad fact is that often Banks are only willing to offer you Loans when you least need it.
The Mad Genius blog explains this perfectly here.
The point is basically to apply for finance while you are able to qualify for the loan, instead of waiting until you hit financial problems to begin applying for extra finance. This concept applies to everyone and not only business owners.
Hereâ€™s an extract from the Mad Genius article:
If you are in business and things are going well then it makes sense to insure yourself against being cash strapped. The easiest way to do this is to access funds via your home loan. Provided you have equity in your bond you can make this money available within 24 hours. You need never use the money and you do not pay interest on money that you do not use. The fees the banks and attorneys charge are minimal in comparison to the money you could lose if you develop a cash flow problem. If you wish to start a business and you are credit worthy then utilizing your bond is the smartest way to go.