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Car Loans Effecting Your Borrowing Power?

Car loans and borrowing power 🚘



Everyone likes driving a nice car don't they? And everyone loves financing cars... until their broker says to them...



"Your borrowing power sucks, because of your German whip!" 🚗



Here's a scenario of a recent client of mine.



$140k base salary 💰


$250k in savings 💵


$40k left on the car loan $1,050 per month payments 👎



Borrowing power on his 1st investment property



$450,000 - with a Tier 2 funder (high-ish rates) 😑



My feedback - "I know you like the car mate, I know you've got this idea in your head that paying it monthly is best, but we can't get you the borrowing power you want due to this payment and you have the cash available in savings... plus if we do this we get more lending options and better rates... here's the results without it"



Paying off the car loan looks like this 👇



Borrowing power $670,000 - same funder (+$220k increase) 📈



Also... access to mainstream funders (Westpac etc.)


Borrowing power - $530,000 - 1% discount on rates 👍



Result - we paid the car loan off. We got access to better investment opportunities!



Book a 30 minute discovery call - linktr.ee/rossthemortgagebroker

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