Leading Financial Solutions

17/08/2021

22/06/2021

APPROVED !

We are delighted to announce the approval of a home loan refinance application for our client to a major bank.

Clients approached us after waiting 6 weeks for an answer from their parent bank with a cash out request of $100k on top of their existing $1.3M owner occupied home loan. The reason for the delay again was due to the lender unable to process the complexities of their self-employed income. After working closely with the client and the new lender, we were able move to an unconditional approval in just 9 days. Client has now signed the contract and will shortly have access to the funding.

Loan amount: $1,480,000
LVR: 80% LVR
Variable rate:

27/05/2021

What is LVR?

When you are working out what amount you can borrow to purchase a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the loan-to-valuation ratio (LVR) is one of the most important considerations.

In the simplest terms, the LVR is the percentage of the property’s value, as assessed by the lender, that your loan equates to. So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80 per cent of the property value, making your LVR 80 per cent.
LVR is important because different lenders and loan types have different maximum LVRs, and some lenders will only lend up to a certain LVR for mall properties or properties in certain areas.

Most lenders will finance up to 80 per cent LVR for residential property, or higher with lenders’ mortgage insurance (LMI) and up to 65 percent LVR for commercial property.

19/05/2021

SETTLED!

Lender: Major investment bank
Loan value: $3,200,000
LVR: 69.5%

We are delighted to assist our clients with the purchase of a prestige family home at Double Bay. Clients are in a very strong financial position however had some difficulty in obtaining the appropriate level of funding due to the complex nature of being self-employed.

Some of the challenges we faced and mitigated in this scenario include:

• Financial reports showed an inconsistent position due to acquisition of new assets and changes in business strategy in the last year
• Shared loans with multiple family members
• Ongoing sale of an existing property – debt still had to be included
• Tight deadline to settlement as previously another lender was involved
• Flood risk in the property valuation

Due to the complexities involved, the file had to be workshopped back and forth with the bank’s credit team – however a bit of urgency on our side combined with a very patient and co-operative client, we were able to secure a formal approval for them within 30 days and meet the settlement deadline.

Are you self-employed and having trouble securing finance from a bank? Contact us today for a fresh perspective on how things can be done.

17/05/2021

In order to decide whether or not to provide you with a loan, lenders will generally assess you against five qualities.

1. Your ability to repay the loan. To establish your capacity the lender will look at your employment history and salary to evaluate whether you have enough cash coming in reliably to pay the loan over time.

2. How much cash you have up front. Assessing your ability to put down a percentage of the value of the property being purchase up front is standard. The percentages vary though, and specialist lenders may approve a five per cent deposit.

3. The property appraisal price. Since the property is used as collateral if you are unable to repay the loan, the lender will value the property. Based on the report, the lender will decide whether the property is worth the loan being approved.

4. Your financial history. Your credit rating, expenses and debts will help the lender assess your character as a borrower and whether you are worth the risk.

5. Market conditions. Economic circumstances in the market can influence what interest rate you have access to and whether you need to provide extra security. They can also influence the repayment schedule.

05/05/2021

Three simple ways to pay down your home loan faster.

⏱ If you're currently making monthly repayments, consider changing to fortnightly repayments. By paying every two weeks you'll make the equivalent of an extra month's repayment each year (as each year has 26 fortnights).

⏱ Due to the magic of compounding interest (and the reverse is also true), any extra you put into your principal will make a significant difference in the reduction of your loan in the long run. Budget to put aside some extra funds into your loan every month.

⏱ Make it habit to review your home loan rates at least every half a year (even if it is currently fixed), there are always deals on the market which can potentially reduce the amount of interest you will pay. Keeping up to date with the market enables you to plan well into the future.