Background: customers had around $120,000 in savings, approached their existing lender for additional lending in order to acquire another investment property, but got declined due to insufficient borrowing capacity.
How did we help?
We reviewed the customers' financial situation and worked with a non-bank lender for a lending solution up to 90% LVR. The non-bank lenders were able to assess the loan application with a lower assessment rate, and was able to take into account a higher proportion of rental income.
The customers were able to get back into the property market and bought an established house worth $680,000. Three years later, the property value increased 30%. The rental income also increased significantly. We refinanced the customers back to a big4 bank for a better rate and access the equity as deposit for the next property.