90% home loan in a regional town

7 September 2023

Background

A couple in their mid-thirties with no dependents wanted to purchase their first home in a regional town.

Challenge

Being self-employed for less than two years and a part reliance on income from a boarder meant that mainstream lenders and other specialist lenders were reluctant to lend at a 90% LVR.

Mitigants

10% deposit from a combination of savings, KiwiSaver and a gift
5% could be evidenced as genuine savings
One party was PAYE with a stable employment history
Excellent account conduct
Clear credit
Credit card limit required to be reduced slightly
No other external debts
One boarder was realistic for the clients’ profile and size of home
New build – good quality security.

Solution

We were able to offer a 90% LVR Near Prime home loan due to the excellent client profile and a good quality new build property located near a main metropolitan area.

Loan amount: $669,728
Interest rate: 10.15% p.a.
Term: 30-year principal and interest
Avanti fee: $705
Adviser fee: 1% of the loan amount
Commission: 0.80% (subject to up to 24-months clawback)
LVR: 90%

Rates and fees were valid at the drawdown of the specific loan facility in each case study, new loans are subject to the rate at application. A copy of our current rates and fees can be found here. 

Disclaimer: This case study is solely for information purposes and is not intended to be financial advice. Neither Avanti Finance nor any person involved in this case study accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation or omission, whether negligent or otherwise, contained in this case study.

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