Owner Occupier Home Loan

Success Factors

  • Ensure the client was well educated on deposit solutions available to her and the pros and cons of each option – gift vs family guarantee vs lenders mortgage insurance

  • Being able to really understand the goals and objectives of the client to achieve the best outcome available to her – without continuous communication we would not have known the property she purchased was not acceptable with her pre-approved lender

  • Presented her income strongly that allowed the client to achieve her desired purchase price without needing to make adjustments to her current position.

The Situation

Our client is a PAYG contractor who has been working in this role for over 5 years. She jointly owns an investment property with her two sisters and still lives at home with her parents. 

Having an established career, she was at a life stage where she wanted to have a place where she could call her own and build her family. Even though she had experienced previous Mortgage Brokers before, she sought a friend’s referral who can provide guidance on her property budget as she only had a small deposit available.

The Challenges

  • Clients exchanged on a contract and paid a deposit on a property it did not meet the lender’s requirements which we had a pre-approval for

  • Given the lender no longer met the requirements for the new property we had to immediately decide on another strategy and lender which could meet the requirements.

The Results

We presented the client with the following deposit options:

  1. Unconditional and Non-repayable Gift – This would have been the most convenient option for the client but wanted the independence and not have to rely on parents savings
  2. Family Guarantee – This requires some administrative work but was a viable option as her parents owned an unencumbered property
  3. Lenders Mortgage Insurance – One of fee to an insurer to cover the bank incase the client defaults on the loan.

From the options above and further discussion with her parents, we decided that Family Guarantee would be the most suitable. From there, we spoke with the parents to ensure they understood exactly what a family guarantee means and all the risks that are associated with it before proceeding with a loan application.

Pre-approval was instantly achieved with the desired lender and the client went off searching for her perfect home.

We kept in close contact with the client and it’s important we did that because it turned out she found a property which did not meet the requirements for the lender we had pre-approved.

A new assessment was shared with the client and we were able to promptly decide on a new lender, and achieved an approval after one touch.

The client was able to settle on this new home and make it their cosy new place.

We also received a wonderful testimonial from our client who was really appreciative of all the work and education we had helped them with.

WHO TO TALK TO

Priscilla Tan
Senior Finance Broker

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