Our client is an expat – Australian citizen, living and working in China – employed by a large Australian project management company with global operations.
His work posting in China is by virtue of being a Hong Kong Resident. He earns PAYG income in Chinese RMB, as well as receiving a housing and travel allowance.
He had purchased an off the plan investment property in Ryde, NSW. The purchase price was $660,000 and our client had saved up $350,000 to complete the purchase. He was seeking borrowing of a little over 60% LVR.
Our client needed assistance to manage the loan application for him, all whilst being overseas most of the time.
The timing of this loan application was during the height of the Hayne Royal Commission, when the majors were more reluctant to approve loans.
After putting in the loan submission with a major bank which the client had initially decided upon, things began to unravel.
We were advised by the solicitor on the day of submission that strata plan had been registered and settlement had been called.
This provided us with less than 14 days to settle the loan!
Although the loan serviced at face value, the bank would not accept exceptions regarding working visa and income even though we offered additional supporting documents (Overseas Tax Returns) and official notices from the Government.
While managing the question and response with the bank, we were also advised the valuation came in low.
This scenario showcased our highest level of service for expat clients who rely on us to manage their loan application from start to finish.
Since being notified of the purchase, we were in constant contact with the client regarding settlement timeframe. We requested supporting documents early in the process to allow us to come up with the most suitable loan options.
After presenting the loan options, the client decided to proceed with a major bank. We moved quickly to collect remaining supporting documents to submit the application.
Due to country differences, it was proving difficult to collect accurate supporting documents to ensure the loan application would be in good order.
Whilst the client was travelling in Australia, we took the opportunity to invite him into the office. This allowed us to provide guidance on remaining documents required and for him to sign the application form.
Even though we had a quick turnaround in the loan submission, we were advised by solicitor on the same day that strata plan had been registered and settlement had been called. There was just under 2 weeks to settle the loan.
We worked closely with the BDM who was extremely helpful and assisted escalation on a few questions posed by credit.
We provided detailed responses and explanations, backed with supporting documents, including document translations.
However sensing there was a risk in settlement, we made the executive decision to submit a loan application to a second lender which we vetted with the BDM who was supportive of the loan application.
This other loan application was submitted with a 2 day turnaround, while we simultaneously requested an extension on settlement of 14 days. Formal approval was issued shortly and we had to diligently prepare the client for settlement.
This meant pre-booking a spot at the Australian Consulate Office in China, arranging for funds sent to solicitor and loan documents couriered to lender’s solicitor.
We relentlessly followed up with solicitors to ensure documents were certified as a matter of urgency and file was ready for settlement.
Together with the assistance of the solicitor we fought for
an extension of 14 days for settlement without any penalty interest from the developer.
Eventually, settlement was completed on time, on the extended settlement date, without penalty.