Cars can now be used to secure a home loan
Liberty Financial is offering homebuyers a chance to boost their chances of getting home loans by using the equity in their cars. Liberty will advance amounts of between $10,000 and $60,000 on vehicles no older than nine years. Up to 90 per cent of a car's value can be advanced. The borrower repays the loan in equal monthly principal and interest instalments over two to five years.
Liberty says a car loan is an ideal supplement to support an application to refinance a home loan and other debts. Homebuyers can use these loans to consolidate credit card debts, personal loans and finance company loans at interest rates between 13 and 22 per cent into a Liberty home loan product at a much lower interest rate.