End Debt Vs Peak Debt

Peak Debt.
Peak debt means that in order to qualify with the lender, you need to be able to service the combined debts of the property you presently have a mortgage on plus the debt of the property you are going to purchase.

In other words if the property you presently own or live in has a debt of $200,000 and you are buying a new property and need finance of $400,000, then your income must be sufficient to service the total loan of $600,000.

Peak Debt Repayments.
With a peak debt loan, you must continue making monthly repayments on both loans.

End Debt.
End debt means that you only need to service the debt balance once you have sold your existing property.

In other words, if your present property is worth $350,000 and you owe $200,000 and you buy a new property worth $400,000 then when you eventually sell your previous property, you will technically have a profit of $150,000 which will then be places against the new property which means you will now only have an end debt of $250,000.

End Debt No Repayments.
With an end debt loan you do not need to make any repayments until you have sold your original property.

If you elect to choose this option, interest is compounded onto the loan until such time as you start making repayments. You do of course have the option to continue making your normal repayments if you so choose.

 

Go Between Loan

 

Relocation Loans or Bridging Loans are also called Go Between Loans all of which can be a solution to a problem many home buyers encounter. Finding a new property you want to purchase prior to selling your existing home. Without the proceeds from the sale of your existing property, there is a financial gap to cover.
Customers in these circumstances can apply for a Go Between Loan. This enables customers to finance the purchase of their new home before selling their existing property. You have up to 12 months to sell your existing property. A Go Between Loan is secured by both the existing and new properties.

Building or renovating that dream home?

With a Go Between Loan, you can make your dream a reality. If building, a gobetween loan can be progressively drawn down as each stage of construction is completed - meaning that you don't need to settle the loan for the full amount all at once so you can build your new home, while still living in your current one. No need to rent or stay with your relatives! You repay the loan when you sell your existing property - taking up to 6 months (12 months for construction loans) to do so after you settle on the new property.