Background
A married couple in their early 40s, with three dependents, were looking to purchase their fourth investment property in Turangi using a 10% deposit.
Challenge
Their main bank required a 30% deposit to purchase an existing dwelling as an investment property, which they did not have.
Mitigants
After the couple’s adviser approached us, we took a close look at the property they’re planning to purchase, their broader investment portfolio and overall profile.
- The Registered Valuation showed the property was in good condition, with a new roof and carpets. No structural renovations or deferred maintenance were required.
- Expected rental income from the new purchase would self-service mortgage repayments.
- Low dollar loan amount and the average sale price in Turangi ($377,500), with 63 median days to sell, provided further comfort around the location.
- They had an existing investment portfolio with a strong repayment history with their main bank.
- They are seasoned investors, with a good quality portfolio and strong overall equity position.
- They have a good client profile, stable PAYE employment, and good account conduct.
- A 10% deposit was sourced from an equity release using the available limit from their revolving credit facility.
Solution
Appreciating their strengths, we approved a 30-year Near Prime first mortgage, supporting their continued investment growth.
LOAN AMOUNT
$274,500
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 to Support Portfolio Growth
Building a property investment portfolio with multiple properties can be tough—especially when high deposits are out of reach. Traditional lenders may limit borrowing capacity.
As a specialist lender, we take a broader view, considering equity, rental income, and long-term goals to create tailored solutions that support sustainable portfolio growth.