Background
A young couple with two dependents, who had recently returned to New Zealand after living overseas, sought to purchase the property they were currently renting as their owner-occupied home at 85% LVR.
Challenge
One of the clients had a recently paid small financial default, which the main banks were unwilling to overlook.
Mitigants
- Stable PAYE employment history
- Applicant one had a strong credit history
- Default – although financial, this had been recently paid, and a clear explanation was provided as to how this occurred
- Genuine savings with a small gift to complete the balance of the deposit
- Strong servicing position.
Solution
Given the overall strength of the clients’ profile, we were able to approve the loan at the higher LVR of 85% under our Near Prime offering. This solution enabled the clients to purchase the property they were currently renting.
Loan amount: $1,007,250
Interest rate: 8.90% p.a.
Term: 30 years
Avanti fee: $705
Adviser fee: $10,072
Commission: 0.80% with a 24-month clawback period
LVR: 85%
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.