Background
A single, self-employed customer living in his owner-occupied home with two boarders aspired to purchase his first investment property – a brand new, 3-bedroom standalone townhouse in a desirable location.
Challenge
To move up the property ladder, he has several lending hurdles due to his unique circumstances:
- Lacking the ability to demonstrate consistent income to meet bank requirements
- Self-employment income as a co-owner of a cafe
- Post-COVID financial fluctuations
Mitigants
We worked closely with his adviser, conducted a thorough review of his financial position and credit profile, uncovering a list of positive factors to help move his application forward.
- Good customer profile and credit score
- No existing mortgage arrears, missed payments, or defaults
- Strong affordability with a positive UMI position
- No external debt
- The business is now trading at pre-COVID profitability levels.
- The new build property requires minimal maintenance costs for the first few years.
- The registered valuation supports the purchase price and indicates good quality security.
- A 10% deposit is being provided from savings.
Solution
Understanding his potential, we provided a 30-year Near Prime first mortgage, enabling him to step into property investment for the first time.
LOAN AMOUNT
$586,000
INTEREST RATE
8.15% p.a.
LVR
90%
TERM
30 years, Principal and Interest
AVANTI FEE
1%
ADVISER FEE
1%
COMMISSION
0.8% with a 24-month clawback period
CASE STUDY - PROPERTY LENDING
Property Investment Loan for Self-Employed
Self-employed borrowers often face hurdles with traditional lenders due to irregular income or complex financials.
As a specialist lender, we look beyond the numbers—considering the full financial picture, business strength, and future potential. Our flexible approach helps turn property goals into reality, without the cookie-cutter constraints.