People often ask if they can buy a car and add it to their home loan or should they use specific car finance loans.
There is no easy answer as every situation is going to be different.
It would seem to make sense to top up your home loan as the interest rates are lower but you need to set it up properly. The key is to match the term of any loan to the useful life of the item, so when financing a car on your home loan you want to ensure that you set up the loan with a relevant loan term – not the 25-year or 30-year standard home loan term.
You also want to ensure that the extra borrowing is not going to put the overall lending over 80% of the property values as that can trigger the extra cost of a low equity margin which can affect the whole home loan.
Our team of mortgage advisers will be able to provide you with the best advice, and can arrange either a top-up to your home loan or car finance.
