The couple’s aspiration for a holiday home on the South Coast was hindered by the lending limitations set by their past financials. Despite a flourishing business and solid income, traditional loan assessments based on their previous two-year financials did not showcase their true borrowing capacity, putting their dream just out of reach.
The Challenge
Our clients, a self-employed couple, were on a mission to purchase their dream holiday home on the South Coast. They encountered obstacles due to limited borrowing power, as their financials from the past two years didn’t sufficiently support the loan amount they needed. Despite their business taking a positive turn and drawing a substantial wage, their historical financial records fell short of reflecting their current financial prosperity.
The Solution
We introduced them to alternative methods of income verification tailored for self-employed individuals, such as reviewing BAS statements, obtaining Accountant’s Letters, and exploring the new Simple Verification for Self-Employed. The Simple Verification method, which involved analyzing six months of payslips, proved to be the golden ticket. By annualizing their six months of income over a year, we significantly enhanced their borrowing capacity. This financial maneuvering enabled us to tap into the equity of their existing home, paving the way for them to acquire their much-anticipated holiday retreat on the South Coast. The dream was no longer a distant vision; it was a reality, enriched with the promise of countless cherished moments in their new sanctuary.
The Outcome
With their borrowing power successfully amplified and the right loan strategy in place, the clients not only secured their idyllic holiday home but also unlocked a new level of financial flexibility. The seamless navigation through alternative income verification methods ensured that their current financial stability was accurately represented, leading to a fulfilling transaction. As they settle into their coastal haven, they do so with the knowledge that their entrepreneurial journey and financial acumen played a pivotal role in turning their dream into a tangible reality.