A lot of our clients who run small businesses have business loans secured against their residential properties. If you don’t have a commercial asset and still require business debt, this is a very common way to secure your business loans. However, what banks like to do, is charge higher rates for business loans than they do for regular residential loans.
What a lot of people don’t know is that some banks will let you refinance this business debt to them, and they will convert it to a residential investment debt.
Some people are paying business debt rates of around 5%, when they could simply refinance to an investment debt of around 3% saving thousands a year on interest.
There are some conditions, such as having to pay off your house loan debt at the same time, so it’s better to talk to us so we can offer the right product and structure for you.
If you have any questions or would like to enquire further, please give us a call.