Author Archives: Bill Salouris

Residential – Low Credit Score & High Density Off the Plan

 

Our client purchased an off the plan apartment in a high-density area which usually means a lower LVR. Moreover, the customer had a very low credit score. Generally, a lenders capacity to lend to a customer varies on customers credit history and the risk associated with it, location, security type and capability to pay the debt.

As most lenders credit score, the customer was in risk of not securing finance when settlement is due. We provided a solution with a non-bank lender that does not credit score and facilitated the finance at 80% LVR as well as a competitive rate for when construction completes and settlement is due.

Amount:              $840,000

LVR:                       80%

Interest rate:       4.40%

Residential – Credit Impairment & Postcode Restriction

Our client wished to purchase a property in Western Australia for owner occupied purposes. Typically, most lenders are hesitant to lend in this location due to its close proximity towards the mining region of Western Australia. Additionally, the customer had declared bankruptcy and had been discharged from bankruptcy for less than 5 months. This

We negotiated the finance through a non-bank lender and got an approval for 75% LVR (most lenders will not lend at this location and due to the level of credit impairment). This allowed the customer to purchase the property with the equity he had available.

Amount:              $130,000

LVR:                      75%

Interest rate:       7.42% (Due to level of credit impairment, LVR and risk)

Residential – Prestige Property & High Density

Our client purchased a luxurious property in a high-density area which usually means a lower LVR (usually 70% LVR or less depending on location and security). In addition to this, the client had a restructure of his employment and was only one day into his new role as an executive and part of this new role had acquired a certain shareholding of his company.

Typically, funders would deem this as Self-Employed as the customer has a certain shareholding of the company and would require company financials and returns as well as personal returns. Furthermore, funders require customers to be in a specific role for at least 6 month or more.  Due to these requirements the customer was in risk of losing the property as he would have been unable to obtain finance 2 weeks out of settlement.

Through intensive negotiation and mitigation, we were able to facilitate the finance via one of more than 300 lenders on our panel and settle on the property in time.

Amount:              $1,226,000

LVR:                       50%

Interest rate:     3.97%

SMSF Finance

Short Term Construction Loan in SA

Our client needed a short-term loan to compete construction of a vacant investment property in SA.  We facilitated the finance for a six-month term $240,000 loan from one of our private lenders. Property valued at $650,000 upon completion of project. GCC Home Loans was able to secure this finance option in less than a month.

Amount:              $240,000

Interest rate:     Indicative Only variable rate of 9%

Refinance Existing Loan + Renovation

Our client sought to raise funds to refinance an existing loan for residential property in Mount Elliot, NSW. Borrower needed an additional $108K for renovations for the property. We were able to facilitate finance for a low doc loan from one of more than 250 lenders on our panel.

Amount:              $680,000

LVR:                       80%

Interest rate:     5.49%

SMSF Loan – high density area

Our client purchased an apartment in a high density area which usually means lower LVR. We facilitated the finance through a funder that offers 80% LVR as well as a competitive rate. Loan amount settled was 70% due to loan capacity but 80% is achievable.

Amount:                $360,000

LVR:                       70%

Interest rate:        5.28%

SMSF Loan – 80% LVR, insufficient assets in SMSF

Our client sought to raise funds to purchase an investment property. Total net asset of SMSF was $105,000 which is less than what banks require (usually ranges from $150,000 – $200,000).

We facilitated the finance via one of more than 250 lenders on our panel, there was no need for extra funds into the SMSF.

Amount:             $240,000

LVR:                    80%

Interest rate:     5.99%

SMSF Loan – Off-the-plan security, insufficient serviceability within SMSF

Our client purchased an off-the-plan property located in Brisbane metro through SMSF. One year later when construction has completed, lending policies for SMSF have changed thus organizing finance through ordinary channels was not possible.
We facilitated the finance using a unique lending product that allows the loan to be viewed as an ordinary property loan, while establishing an agreement in the background to ensure compliance as a SMSF loan.

Such lending option is particularly helpful when property location is not acceptable to SMSF funders, or if loan capacity of your SMSF alone is insufficient.

Amount:              $388,000

LVR:                    80%

Interest rate:     4.79%

Lenders fee:       $8,410