Customer Goal
A couple aimed to purchase a new property and had already signed a contract, making a deposit with settlement scheduled in just three weeks. However, they faced a significant challenge in securing the necessary financing for the transaction.
Problems
The couple initially received approval from a Tier 1 lender but found themselves in a precarious position. The lender could only offer them a loan amount of less than 70% of the property value, which would have forced them to use a substantial amount of their own funds—far beyond their available resources. They had some assets, such as shares and cryptocurrency, that they could sell to make up the difference, but they were reluctant to liquidate these investments to complete the purchase.
The primary reason for the limited loan amount was that the husband (MA) had started his business just 10 months earlier. Although his business was profitable, the bank’s policy restricted the use of those profits for serviceability calculations, further complicating their financing situation.
Solution
Recognizing the urgency of the situation, we quickly approached various lenders with the couple’s scenario. We were able to identify two lenders willing to help meet their objectives:
- Equity Release: We found a lender who agreed to release equity from land they had previously purchased, which provided crucial funding towards their new property purchase.
- Higher Borrowing Capacity: We secured another lender that permitted borrowing up to 90% of the property value, allowing the couple to finance the purchase without depleting their personal funds.
