A Quick Overview
| Details | Explanation |
|---|---|
Goal | To refinance their existing home loan, consolidate business and personal tax debt and access a small cash out for minor renovations |
Problem | Highly weekly repayments of about $2,177, weekly ongoing tax obligations of $1,200 and multiple liabilities requiring cleanup |
Loan Amount | $854,250 |
LVR & Term | 67.8% LVR, 25-year loan term |
Income | $127,972 p.a. each (combined $255,944), supported by accountant declaration (self-employed / alt doc) |
Solution | Consolidated multiple debts into a single low doc home loan, cutting weekly repayments to $1,355 and freeing up $822 in cash flow each week. |
Customer A and Customer B were a hardworking couple who had built a solid life through their own business.
As homeowners with strong equity, they had done the right things. But unexpected challenges had started to put pressure on their finances.
Like many self-employed Australians, they weren’t looking for shortcuts. They just needed a smarter way to regain control.
Why High Repayments and Tax Debt Reduce Cash Flow
Customer A and Customer B found themselves under increasing financial pressure despite running a successful and recovering business.
During a period of disruption, they had accumulated both business tax debt and personal tax debt, which they were actively repaying through structured payment plans. While they remained committed to meeting their obligations, these repayments totalled around $1,200 per week, placing ongoing strain on their cash flow.
When combined with their existing mortgage, their total weekly repayments reached approximately $2,177, leaving little room to breathe.
Even though their income was strong and their business was improving, the constant outflow made it difficult to get ahead. It wasn’t just about numbers. It was the feeling of working hard but not seeing progress.
Their situation was further complicated by a court writ on their credit file, which resulted from a misunderstanding and had since been resolved. While their overall credit history was strong, they knew this could still impact their ability to refinance.
They also had a few smaller liabilities that needed to be cleaned up, adding another layer of complexity to an already stressful situation.
At its core, the challenge wasn’t a lack of income or discipline; it was a lack of structure.
Without the right lending strategy, they were stuck managing high repayments, multiple debts, and limited cash flow.
With no one else to turn to, the couple found Home Loan Experts.
How A Refinance And Debt Consolidation Strategy Improved Cash Flow
Mortgage Broker Anil Joshi stepped in with a clear plan: reduce financial pressure, improve cash flow, and consolidate debt into a sustainable structure.
Anil devised a refinance and debt-consolidation strategy, rolling all existing tax debt, including business and personal, into a single home loan. This eliminated the need for multiple high-pressure payment plans and simplified their finances.
Recognising that they were self-employed, Anil structured the application using a low doc home loan, supported by accountant-declared income. This ensured the lender understood their real financial position, rather than relying on traditional documentation that may not accurately reflect business owners’ financial positions.
He also addressed the credit concern head-on by providing clear evidence that the court writ had been discontinued, positioning it as a resolved issue rather than a risk factor.
All outstanding requirements, such as closing unused accounts, were carefully managed to strengthen the application.
The result was a new loan with repayments of approximately $1,355 each week, down from $2,177.
This created an immediate cash flow improvement of around $822 each week, giving the customers the breathing room they had been missing.
How A Successful Refinance Led To Financial Control
With the refinance complete, Customer A and Customer B experienced a major financial turning point.
By consolidating their debts and restructuring their loan, they moved from a position of constant pressure to one of control and clarity.
The $822 each week in savings changed how they felt day to day. They could finally focus on growing their business, rather than just keeping up with repayments.
They also achieved their goal of accessing funds for minor renovations, helping improve their home and lifestyle.
Most importantly, they regained confidence in their financial future.
Get An Expert To Help With Debt Consolidation
Struggling with tax debt, high repayments, or cash flow pressure? A tailored refinance or debt consolidation strategy could help you take back control. Get in touch today to explore your options. Call us on 1300 889 743 or enquire online.