Background
A father in his thirties who has put his checkered past behind him and started afresh, urgently needed to refinance and consolidate a small amount of non-bank debt arrears in order to keep the Auckland family home he has owned since 2016.
Challenge
He has historic but paid defaults, and currently has a couple of smaller debt arrears which arose when he used his home as security when he guaranteed a loan for a relative. The family member said they would take care of the arrears but failed to do so, and now the customer faces losing his house that he, his partner and young child call home. His current main bank lender was not willing to support a debt consolidation loan, so his Adviser turned to Avanti Finance for help.
Mitigants
- Highly skilled and respected in his field of work
- Earning a good income, employed full time with a well-known and respected local business
- No history of mortgage arrears
- Good account conduct evidenced
- 49.5% LVR
- Good servicing proposition with a positive UMI
- Customer has turned his life around wanting to support his family and just needed a break
- Strong character references.
Solution
Avanti were comfortable supporting this customer with a long-term (Near Prime) first mortgage with our current special pricing of 8.90% p.a. (0.25 bps discount off our base rate of 9.15% p.a. for two years from drawdown).
A great second chance opportunity and outcome that allowed a young family to stay in their home.
Loan amount: $220,000
Interest rate: 8.90% p.a. (9.15% p.a. with a 0.25 bps discount for 2 years)
Term: 30-year principal and interest payments
Avanti fee: $705
Adviser fee: $2,200
Commission paid: 0.80% of the loan amount (subject to clawback if repaid in full within 24 months)
LVR: 49.5%
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.