You might not need a car loan 🚗
If you already own a home, here’s something most home owners don’t realise…
You may be able to purchase your next car using your home loan.
Instead of taking out a separate car loan with a higher interest rate, you can add a split (or side loan) to your existing home loan and use those funds for the car.
WHAT DOES THAT MEAN FOR YOU?
Lower interest rate
Home loan rates are typically much lower than car loan rates, which can save you a significant amount in interest.
Flexible loan structure
You can set up the car portion over a shorter loan term, so you’re not paying it off over 30 years and choose something smaller like 5, 7 or 10 years.
Better cash flow
Lower repayments compared to a standard car loan can ease pressure on your monthly budget.
But a quick word of caution…
If structured incorrectly, you could end up paying more interest over time, so it’s important to set it up properly from the start.
If done right, it’s one of those simple strategies that can save you thousands when done rightÂ
Note: This is general information only and not personal financial advice. Please speak with a professional to understand what’s right for your situation.
