Background
The clients, a married couple with one dependent child, were seeking to refinance their home loan, along with a $40,000 top-up/equity release for debt consolidation and home renovations.
Challenge
We were approached by the clients’ adviser as they were unable to obtain finance through traditional lenders due to a combination of factors:
- One applicant is currently on paid parental leave until July 2025
- Higher LVR at 94%
- Affordability not demonstrated for the full refinance and top-up
Mitigants
Working alongside their adviser, we took a holistic view of the clients’ financial situation and identified several key strengths that were overlooked by their main bank lender – particularly their ability to service a caveat-secured loan option.
- Existing mortgage and loan repayments were being met consistently
- Strong account conduct demonstrated
- Client profile considered acceptable
- Solid and stable employment history
- Property owned in personal names
- Clear affordability for a caveat-secured loan option, with consolidated debt and renovation top-up resulting in lower overall repayments than current commitments.
Solution
By considering an alternative solution, we were able to demonstrate affordability for a caveat-secured property loan. This enabled the clients to keep their existing first mortgage in place with their main bank, retaining their lower interest rates and avoiding solicitor refinance and registered valuation costs.
Our tailored solution consolidated their existing debts along with the funds needed for general property maintenance into a single, affordable loan – improving cash flow and simplifying their financial obligations.
LOAN AMOUNT
$40,000
INTEREST RATE
14.95% p.a.
LVR
94% (iVal used, no RV required)
TERM
10 years, Principal and Interest
AVANTI FEE
$485
ADVISER FEE
$1,000
CAVEAT REGISTRATION FEE
$170
CASE STUDY - PROPERTY LENDING
Tailored Property Lending Solutions
Our property lending solutions are tailored to meet clients’ diverse needs, whether they’re purchasing their first home, upgrading to their next, investing in property, consolidating debt, or renovating their home. Taking a personalised approach, we look beyond the numbers to workshop a solution that fits your clients’ unique circumstances.
If you have clients in any of the above positions, get in touch.