Background
Pre-approval requested by a single applicant looking to purchase their first home in Whangarei at 90% LVR.
Challenge
Other lenders were unable to consider the loan due to the high LVR in this location and the reliance on flatmates to support the servicing of the loan with the LVR being over 80%.
Mitigants
- 10% deposit made-up of genuine savings, KiwiSaver, and First Home Grant
- 5% could be evidenced as genuine savings
- Clear credit
- Excellent account conduct for both business and personal
- Good savings history evidenced
- Although they’ve only been self-employed for 12-months, the client has been in the industry for four years
- Small business loan was being serviced by the business
- No personal short-term debts
- Good UMI – using both salary and boarder income
- Single applicant with no dependents, purchasing a 3-bedroom home makes relying on two flatmates realistic.
Solution
We were able to offer a 90% Near Prime pre-approval home loan, subject to an acceptable property being located in Whangārei City.
Loan amount: $450,000
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.