Background
After years working in Australia’s mining industry, our customer hopes to bring his wife and children closer to the extended family in Hawkes Bay while he continues to work rostered weeks across the Tasman. He set his sights on a small town in Hawkes Bay, where he found his dream property as a permanent home base.
Challenge
Despite having a strong credit history, good income, and stable employment in Australia, the customer’s home loan application was declined by his bank – citing a high LVR and reliance on overseas income.
Mitigants
While the customer’s situation didn’t tick all the boxes for traditional lenders, we took a more nuanced approach to assess his financial position and saw a different story:
- He was permanently employed in Australia, with evidence to support this.
- Servicing could be demonstrated, allowing for shading of his Australian income.
- All expenses for regular travel between Australia and New Zealand would be covered by his employer.
- He has good credit history and client profile.
- His deposit balance comes from savings and KiwiSaver.
- A registered valuation demonstrated acceptable security, with no issues or deferred maintenance.
Solution
By recognising the customer’s potential, we stepped in with a Near Prime, high-LVR, long-term first mortgage—enabling him to secure his dream home for his family in a small Hawke’s Bay town (which other specialist lenders were unable to consider).
LOAN AMOUNT
$360,570
INTEREST RATE
7.65% p.a.
TERM
30 years, Principal and Interest
AVANTI FEE
$705
ADVISER FEE
1%
LVR
84%
COMMISSION
0.8% with a 24-month clawback period
CASE STUDY - PROPERTY LENDING
First Home Loan for Returning Kiwis with Overseas Income
Many Kiwis living overseas, as well as Kiwi families seeking a home base in New Zealand while maintaining a cross-border lifestyle, face challenges when it comes to financing a home or investment property.
Avanti’s First Home Mortgages offer a stress-free, flexible lending solution designed to navigate these unique circumstances