Our client surpassed their pre-approval limit at auction, risking their property purchase due to insufficient funds. We refinanced their existing property, extending the loan term and securing a lower interest rate, which increased their borrowing capacity. This bridged the financial gap, allowing them to finalize their new property acquisition successfully. The client’s proactive refinancing approach ensured their property ownership and financial health.

The Challenge

The client secured a pre-approval for their maximum borrowing capacity but ended up bidding beyond this limit at an auction. This left them short of funds to cover the difference between the pre-approved amount and the final purchase price.

The Solution

Before bidding for a new property, they had an existing property which has 25 years remaining on the loan term. We opted to refinance this property and by resetting the loan term to 30 years and negotiating a lower interest rate, we effectively increased their borrowing capacity. This strategic move provided them with the necessary funds to bridge the gap and complete their property purchase.

The Outcome

The client transitioned from a potential financial setback to a triumphant property owner, all thanks to a tailored refinancing strategy. With a more manageable loan and an extended term, they could secure their new property without compromising their financial stability. This experience not only resolved their immediate funding shortfall but also imparted valuable lessons in strategic financial planning and the importance of having a flexible and responsive mortgage strategy.

We come across casual workers who have repeatedly been told that they do not qualify for a loan. Let us show you how we busted this myth with a client who had been causally employed for a number of years.

The Situation

Our client was employed as a casual teacher:

  • With strong demand, she was getting regular work and had been a casual teacher for over a year
  • Being casual, it also meant her day rate was higher than if she was permanent.

Her finances:

  • She had a great savings balance of $50,000 and was saving extra with her goal to buy her own place
  • She was renting and wanted to have her own home.

The Plan

  • We used her previous tax return to confirm the consistency of her casual employment
  • We worked out her borrowing capacity and which lenders we could apply to using their casual employment policy. There are a range of lenders and products available for casual workers, and while their policies change occasionally, they will generally look at your income, employment history, and credit file when reviewing your loan application.
  • We focused on her budget to ensure she could afford the loan if she worked less hours
  • She met with a financial planner to ensure she had sufficient personal protection to cover her mortgage in the event she could not work.

The Outcome

  • She successfully purchased her own home and has been paying this down regularly
  • She has since purchased an investment property using the equity in her home and plans to buy her second investment property.