| If there is one thing that everyone across the world | | | | these debts. Needless to say with the tax authorities |
| unanimously strives for is Peace of Mind. Whatever | | | | after him, Paul lost his once taken for granted peace |
| we do in our lives, work, start a business, start a family, | | | | of mind. |
| ultimately it all boils down to one question: Are we | | | | Paul tried numerous banks to refinance his mortgage |
| really happy or can we really say our lives are stress | | | | to pay his tax debt, but none would lend him the |
| free? Well, the unfortunate truth for many of us today | | | | money as his situation did not fit with their lending |
| is that the answer is a sad NO. | | | | criteria. Paul needed to borrow more than 80% of the |
| One of the biggest reasons for that unfortunate truth | | | | value of his home - in other words, the loan was |
| is tax debts. Today more and more people are getting | | | | above an 80% Loan to Value Ratio (LVR) - so the |
| into the tax debt trap which has led to the local | | | | Lender's Mortgage Insurers also had an issue. |
| taxation offices breathing down their necks causing | | | | So what was the solution to Paul's problems? The |
| severe panic and stress. So much so that the tax | | | | solution here was a loan specifically designed to |
| authorities are resorting to new measures and | | | | Refinance Tax Debts. Of course no one expects you |
| recruiting more resources for recouping these debts. | | | | to approach refinancing tax debts on your own. There |
| Some of these measures include making their | | | | are now specialists in this field who specializes in |
| telephone staff ring you after hours or recruiting | | | | supporting the needs of small businesses who have |
| external debt collection companies to knock on your | | | | associations with a range of lenders, providing loan |
| door. Enough to make you lose sleep. | | | | products that are designed exactly with the purpose |
| Let's take a simple example of Paul. A family man, | | | | of refinancing tax debts. |
| Paul owns a small business selling wholesale tractor | | | | Paul approached one such specialist refinancing |
| equipment. He runs the business out of a small office | | | | company. With Paul's permission, the specialists |
| he rents. Paul's business was growing at a fast pace. | | | | approached a number of lenders to look at his |
| Excited about the future possibilities he planned his | | | | situation. The final outcome is that Paul increased his |
| expansion and growth both professionally and | | | | existing $280,000 mortgage up to $350,000 to pay out |
| personally. But unfortunately in all the excitement he | | | | his tax debt. This was a 90% LVR against his |
| made some crucial mistakes. Primary mistake was not | | | | properties, valued at $390,000. The lender that was |
| taking his tax responsibilities too seriously and as a | | | | used didn't require Mortgage Insurance and caters |
| result he failed to pay his ongoing tax dues. This meant | | | | specifically for clients whose needs were outside of |
| that soon he had plenty of accrued tax debts thus | | | | the norm. |
| attracting the interest of the taxation office to recover | | | | |