Background
A young couple recently returned from working overseas and were looking to settle down and purchase a home together. They’re looking to buy a property from a family member. The property is sound but needs some cosmetic renovations as it’s a little dated, so they would like to hold back some of their savings to enable them to do this. Their 10% deposit is made up of savings and KiwiSaver.
Challenges
- One client was working towards a partner residency
- They only recently started employment in New Zealand
- For their main bank, their UMI isn’t strong enough to secure the level of lending needed.
Mitigants
- Low consumer debts – only a small credit card facility
- Shares and other assets held overseas that they didn’t want to sell/cash in
- Registered valuation read well, just some cosmetic renovations needed to enhance the property
- Clean credit
- Excellent account conduct.
Solution
A Near Prime Long-term First Mortgage at 90% LVR. This enabled the clients to move forward with settling into their new life together in New Zealand, owning their own home rather than renting.
Loan amount: $531,000
Interest rate: 10.15% p.a.
Term: 30-year principal and interest term
Avanti fee: $705
Adviser fee: 1% of the loan amount
Commission: 0.80% (subject to up to 24-month 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.