First home buyer with a twist
Our client contacted us through our website. She was self employed and had just purchased her first property. This case was unusual in the banks eyes as she was a first home buyer aged in her fifties. We met her after she had already committed to the purchase however, was yet to secure finance. If she couldn’t come up with the right solution she was at risk of losing the property and her entire deposit.
We approached some lenders but there were many difficulties and concerns around the application. Some of the roadblocks they put forward were:
- The age of the applicant and the perceived time she had left in the workforce
- The amount she needed to borrow was more than 80% of the total loan to value ratio (LVR) hence the requirement for mortgage insurance
- Some alterations were previously made to the property without a permit, this resulted in a valuation which was unacceptable to the lenders
- Being self employed added more issues and complexities and reduced the likelihood of the application being approved
Through our experience and understanding of the client, we were able to mitigate the concerns of the chosen lender and put forward a case with minimal changes in loan structure. The result was an approval which satisfied the requirements of both the lender and the applicant.The property was settled within the required time frame and our client was thrilled to move into her new home!