Background
When people go through a marriage or business separation, life can get messy and they often need access to credit to regain stability.
At Avanti Finance, we understand these moments. We take the time to listen, and tailor lending solutions around each client’s unique circumstances.
In this case, our customer was going through a marriage and business separation. He needed a long term mortgage and refinance to buy out his ex-partner’s share of both the home and the business.
Challenges
His main bank declined his loan application due to an outstanding IRD obligation of $30,000.
Mitigants
After a thorough review of the customer’s financial position, we were comfortable proceeding based on several key factors:
- Strong UMI. His income position would improve once his ex-partner no longer receives director salary from the business.
- Good overall client credit profile other than IRD arrears
- IRD debt can be cleared from funds in the business account
- Registered Valuation supported acceptable security
- Fully executed separation agreement in place
Solution
We approved a long term near prime 20-year mortgage with a 12-month interest only term. This allowed the customer to align with his retirement plan, pay down the debt and move forward with full ownership of the business.
If you’re supporting customers navigating life transitions or complex financing needs, talk to us.
LOAN AMOUNT
$1,125,675
INTEREST RATE
6.35% p.a.
LVR
80%
TERM
20-year with 12-month Interest Only
ADVISER FEE
$8,900
AVANTI FEE
$775
CASE STUDIES - PROPERTY LENDING
“Our Long Term Near Prime First Mortgage offers competitive interest rates and supports higher LVRs of up to 90%. We also provide the flexibility of up to 5-year interest only, helping meet a broad range of customer needs.
Through our comprehensive credit assessment process, we’re able to accurately determine each client’s risk profile and tailor solutions accordingly – helping you get more of your clients to approval.
If you have customers in a similar situation, get in touch with your local Avanti BDM.“
Paul Rolton
Business Development Manager
Lower North Island, Wellington and Taranaki