Helping a young couple achieve their first home purchase with an 89% LVR loan

A young couple with no dependents were eager to purchase their first owner-occupied property. They faced several financial challenges but were determined to make their dream a reality.

Their home loan application to main bank was hindered under the traditional lending criteria due to the following factors.

• Short-term debt, including recent car loans
• Minor account conduct issues
• Reliance on boarder income at >80% LVR
• Historic small credit issues

Working with their adviser, we closely examined their overall financial profile and were confident about several strengths ignored by their main bank lender:

• They were permanently employed with long-term tenures.
• Boarder income was supported by a letter confirming the intent to reside in the property, which was reasonable for a couple with no dependents.
• Their credit was now clear, with an acceptable explanation for past issues.
• Their new short-term debts had a good repayment history.
• Minor account conduct issues were mitigated by the adviser, and our assessor was comfortable with the explanation provided.
• Deposit was sourced from KiwiSaver.
• A registered Valuation demonstrated good security with no deferred maintenance or issues.