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.
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.
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.
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.
Faced with a low property valuation from their bank, our client was unable to access equity for renovations. We stepped in as mortgage brokers, securing multiple no-cost valuations. The result was a higher valuation from one bank, enabling the client to refinance for a better rate and withdraw $150,000 for home improvements. Consequently, the renovations enhanced both their living space and property value, leaving the client thoroughly satisfied.
We had a client looking to access equity from their owner-occupied property to help fund cosmetic renovations on their property. The client originally approached their existing bank and had a valuation completed. The valuation was completed but did not allow for any further lending.
We spoke with the client and explained that as mortgage brokers, we can order valuations with multiple banks. We approached three different banks and ordered three valuations at no cost to the client. One bank valuation came back with a much higher result that allowed the client to refinance their existing home loan to a better interest rate and access $150,000 to go towards their kitchen, bathroom and landscaping upgrades.
Empowered with the ability to upgrade their living space, the client successfully utilised the additional funds to design their property to their style of livability and functionality. Their investment in key home improvements not only increased their quality of life but also added substantial value to their property. With a more competitive interest rate and a home tailored to their tastes and needs, needless to say, the client was delighted with the outcome.
While every client we sit in front of is truly unique, there are similarities we see in their situations.
In this example, we were working with a client who was a young professional in her late 20’s with her scenario as follows.
…but she was struggling to save towards a deposit. She was stuck in the ‘rental trap’.
Many of her friends were starting to buy their own homes, while some were getting into the market by purchasing an investment property… but she was being left behind.
Once she was educated on her options, this gave her the confidence to start looking at properties within her price range and to start negotiating with real estate agents
