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.