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.