Once you are convinced that the Baby Swap support will be available for loan redemption, banks are slowly outlining which banks will be able to use the existing Swap loan. In many cases, a family can save up to a million in savings by replacing their 4.5% home loan with a 0% baby loan.
How can a loan be redeemed from a grant?
Baby Waiting Support is a free-use loan, meaning it can be used for anything, even for a redemption. The only question is that a maximum of 50% of certified net income can be used for loan repayment based on the GFI (Income-to-Loan Repayment Ratio) as determined by the Good Finance Act.
The eligibility criteria set out in the Baby Waiting Regulation are the same, but the amount of certified income required varies from bank to bank, so it is worthwhile to look at the terms and conditions that certain credit institutions have set for income testing. For this, it is worth asking for the help of our credit brokerage experts, who know in detail how each bank has its own internal regulations, and under what conditions the applicant’s income will be taken into account when granting a Baby Loan.
When baby waiting loan can only be applied?
The Baby Waiting Loan can only be applied for once because every bank calculates differently, which also takes existing loans into account when calculating the GFI, so it is no longer certain that 50% of your certified income will be eligible for the full Baby Waiting Repayment, which means that the full amount of the grant will not be available to the claimant.
There will be credit institutions that will not calculate the repayment of an existing debt that will be redeemed from the Baby Loan, which will allow the claimant to obtain higher support.
Replace when calculating their income
According to our current information, we have only two key partners in the market that do not calculate the repayment installment of the loan they want to replace when calculating their income in GFI, but since Baby Waiting Support is a brand new product, it is possible that the aforementioned practice.
To find out how much you are eligible for, please fill out our form our credit broker will be looking for.