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

Background

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.

Challenge

Their home loan application to main bank was hindered under their 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

Mitigants

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.

Solution

Valuing their potential, we offered this young couple a 30-year near prime first mortgage allowing them to overcome previous credit and deposit hurdles and buy their first home.

LOAN AMOUNT

$629,000

INTEREST RATE

8.15% p.a.

LVR

89%

TERM

30 years, Principal and Interest

AVANTI FEE

$705

ADVISER  FEE

1%

COMMISSION

0.8% with a 24-month clawback period

Avanti Property Lending
CASE STUDY - PROPERTY LENDING

First Home Loan for First-Time Home Buyers

First-time home buyers often face challenges like high deposit requirements, strict credit criteria, and limited borrowing options, making it hard to get on the property ladder.

As a specialist lender, our team takes a flexible, holistic approach—considering factors beyond standard credit checks—to create tailored solutions that help buyers overcome these hurdles and achieve homeownership sooner.

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