A Balloon payment or residualvalue is a lump sum payment that is added to a loan, mortgage, vehicle finance or a commercial loan. This payment is usually made towards the end of the loan period.
A balloon payment is a type of loan that can offer lower monthly payments, in return for a larger one-time payment at the end of your term. A reduced monthly payment could be ideal for your budget. There is a variety of options to pay off the Balloon Payment. You can either do a once-off payment or refinance the amount.This means you will pay the amount off over a certain period (24 - 36 months).
You can also make an ad hoc* payment. This means you pay extra when you pay your monthly installments. This will reduce the total sum payment. Please note this option is only applicable through certain Financial Institutions.
For more information, contact our team who will be able to discuss the best options for you.