Refinancing using prior year financials


The key details of the transaction:
Loan Size: $3.49M
Pricing: 6.14% pa-6.74% pa
LVR: 80%
Security: Residential Property
Purpose: Residential
Lender: Major Bank


Our client has been running an Incident Response Cleaning Company for many years. In late 2023, they approached me seeking for a mortgage refinance due to the expiry of their fixed rate and interest only loans.

While the client had been enjoying low rates locked up during the pandemic years, they now faced a much higher interest rate. Besides the loan reverted to Principal & Interest repayments, which were causing a cash flow strain.

In terms of the business, despite the core segment performing well, FY23 Financials looked less profitable. The lower profitability was due to extra funds spent to grow the business.


We approached this deal by refinancing the loan using FY22 financials so that the client could pass servicing.

To boost servicing, we identified a key “add back” item, namely, discretionary trust distributions.

The loan structure was converted back to Interest Only in order to lower the cash outflow. 

In additional to this, the client secured a cash out for $600,000 towards investments and business liquidity.

The loan successfully settled in January 2024 for $3.94 million, at 80% LVR.