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Good Customer Outcome – Finance to purchase a new home

Good Customer Outcome – Finance To Purchase A New Home
I recently assisted clients looking for finance to purchase a new home. They had;

  • Plenty of savings to contribute (35%) towards the purchase
  • Stable employment.
  • Serviceability was not an issue

The husband whilst employed in a management position and a wage earner, was pigeon-hold as self-employed due to an investment he made in the business he was employed by.

To compound the situation, whilst the investment was generating a sound bottom line, because it had been operating less than two years, several major Banks and Lenders would not take the business income into account for serviceability purposes!

(For income from a business to be taken into account for serviceability purposes, most Banks require it to be operating for at least two years)

The applicants were dumbfounded! On the one hand, the income earned as a wage earner was being ignored and on the other; they disallowed income from the investment given the timeframe the business had been operating!

The Financing Challenge

  • Assessed as self employed
  • Income from business ignored
  • Income as a Wage Earner ignored
  • To move the Banks from rigid adherence to policy, to a more commercial position that recognised the reality of the client’s situation
Graphic Good Customer Outcomes Finance To Purchase A New Home

The Pathway to a Solution!

Explored Options

Given clients level of savings and that their serviceability position was sound -brainstormed potential solutions with our office team

Assessed the Market

Approached our Banker network, explained applicant’s situation and assessed their appetite – and what they required to move forward to a potential solution

Negotiated a Solution

Based on my initial discussions with a number of Lenders, with the assistance of our Business Development Manager, gained accessed to a senior Credit Manager with the experience and authority to view the transaction in a more commercial light.

Finance Proposal

Following the negotiations with the Senior Credit Manager, prepared a detailed Finance Proposal and submitted it for approval.

A Successful Outcome Achieved!

  • Application assessed on client’s income earned through employment
  • Highly market competitive interest rate
  • Low upfront Package Fee
  • Split of fixed and variable finance
Graphic - Finance To Purchase A New Home - Good Customer Outcome

Summary

At times the quest to improve lending standards can see customers negatively impacted through overly rigid application of policy.

This can be exceptionally taxing for applicants endeavouring to navigate this complexity alone.

When it comes to home finance, having options, access to the total market, and the capacity to access the personnel, with authority, is so important.

This is a great example of what can be achieved when Brokers and Bankers work together to find a solution for a client

If you are looking for finance to purchase a new home, don’t hesitate to give me a call on 0421 304 990

Chris Anesco

I am an experienced Mortgage Broker and love helping my clients access the finance they need to buy a home, upgrade or undertake renovations.

I enjoy building long-term relationships and undertaking research to find truly market competitive offers. Attention to detail is one of my major strengths.

Chris Anesco is a credit representative (399790) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)

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