There are many Benefits Of An Access Bond, but one key factor is that you’re able to access the equity available in your home loan at anytime to settle your debt, pay for a holiday or to finance renovations to your home.
One way you could save money by using your access bond to it fullest potential is to purchase you car with the funds available in the home loan.
Very often you’ll pay a lower interest rate on the funds drawn from a home loan than you would by lending money from a bank.
The reason for this is because the value of a car depreciates every year and the bank is therefore taking an extra risk in financing that purchase. The higher the risk to the bank the higher the interest rate you’ll be offered.
Typically the interest charged on Home Loans is a slightly below the current prime lending rate, where as a interest charged on a car loan might be slightly higher than the current prime lending rate.
Use of access bonds to pay university fees, consolidate credit card debt or even to buy a new car is becoming common place among homeowners.
Before you set out to buy that next big purchase, consider the funds available to you in your access bond first.
Remember to be wise and careful when spending this money, as abuse of home equity loans has put many people in serious debt.
What Is An Access Bond?
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