Background
A young couple with two children had recently returned to New Zealand after living overseas. They wanted to purchase the home they were renting as their owner-occupied property.
Challenges
- High LVR requirement at 85%
- One applicant had a recent financial default. Although it had been cleared, it remained a hurdle for main banks.
Mitigants
After the adviser approached Avanti Finance, we completed a detailed credit assessment to understand the full picture. This helped identify several positive factors that supported the application:
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- Stable PAYE employment history
- Strong credit history for one applicant
- The financial default had been paid, with a clear explanation of how it occurred
- Sufficient savings and a small gifted contribution for the deposit
- Strong servicing position
Solution
Based on the overall strength of the application, we approved a 30-year first mortgage, supporting the family to purchase the property they were renting and truly feel at home.
LOAN AMOUNT
$1,007,250
INTEREST RATE
6.85% p.a.
TERM
30-year Principle & Interest
LVR
85%
“Our Residential Long-Term Near Prime First Mortgages offer competitive interest rates and can support higher LVRs of up to 90% for owner-occupied properties.
Our lending specialists take a pragmatic approach to credit assessment, working closely with advisers to understand the full picture, including serviceability, security arrangements, repayment plans and exit strategy. This allows us to identify strengths and mitigants that may not be immediately apparent and find a pathway forward that helps the client achieve their goals.
If you have clients in a similar situation, get in touch with your local Avanti BDM.“
Mark Nolan
Business Development Manager, South Island