With the emergence of fintech, there are several companies that are now able to assess your loan application within 22 minutes. That’s a seriously quick turnaround and great if you’re got a property that you just must have right now.
It’s also great if you are a stock standard applicant (full-time PAYG employed and maybe have a credit card), but applicants like these are few and far between. You can’t have any quirks in your life if you want your loan application to be successful.
Take John and Lisa, for example:
John and Lisa have a unique situation. John runs a small business doing intensive rehab. Lisa is a PhD student with a scholarship and a new casual job. They already own a house in Tasmania and have entered into a contract to purchase a new home in Adelaide. Their existing lender only needs the most recent year’s tax return. The problem is, it was August and they hadn’t done their taxes yet; the lender would not accept less recent tax returns as they didn’t show the latest business growth, and Lisa’s income was not counted by the bank. So, the pressure was on the accountant to collate all the information and get the tax return lodged ASAP as they didn’t have enough income showing to make the deal work with the existing lender. Not a great place to be.
Our Director Barry had a conference call with John, Lisa, and their accountant, and determined that an “alternative verification” (low doc) loan made the best sense for them. Low doc loans aren’t as easy as they used to be and the income still needed to be verified, in this case, from the Business Activity Statements that showed the growth their business had experienced over the past year.
As a solution, we refinanced their existing investment property over to a new lender and the home was purchased with a similar interest rate as the old lender. This was an excellent outcome for John and Lisa as they bought their new house, settled in time and their repayments were the same, all without being forced to lodge the business tax returns unreasonably quickly. A very happy Lisa said, “If it wasn’t for Barry and Clever Finance Solutions, we wouldn’t be in our new home and our business would be under more financial pressure than necessary.”
Note: Client’s name intentionally changed for privacy reasons. Image is for illustration purposes only.