Our client is a Specialised Legal Professional who purchased an off-the-plan apartment in Queensland. The client is a serious property investor who had started to build her property portfolio and currently owns three properties already. Her properties were mainly interstate as they presented better rental returns.
Even though the client is an experienced property buyer she still sought the help of a Mortgage Broker to provide her with immediate options, as settlement was soon to be called for her purchase.
After reaching out, we knew the most important priority post our advice and presentation was to order the valuations. This is because being an off-the-plan purchase the property value can be unpredictable depending on the valuer and that could affect the strategy and ultimately allowing the client to settle on time. We initiated valuations with our shortlist of lenders and simultaneously started to put together a loan application to expedite the process.
Once we received the valuation, which had returned lower than the contract price we needed to move quickly onto a loan submission because we needed to:
Timing is of the essence as we were reliant on the other financial institution to work together on a simultaneous settlement and therefore we sent in Discharge Forms early to give the other bank sufficient time to arrange for settlement.
During this time we also were in negotiations with the lender of choice to request an exception on accepting rental guarantee as part of their income. In addition to presenting mitigants for the bank to accept the rental guarantee, we provided supporting evidence to prove this income would be ongoing and would not affect the client’s ability to repay their loan.
Finally, an unconditional approval was issued and we were able to quickly move through all the administrative work to simultaneously settle the refinance and purchase of their new investment property.