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, resulting in a lower LVR, while in addition they had a very low credit score.

Generally, a lender’s capacity to service a customer depends on a customer’s credit history and the associated risk, location, security type and capability to pay the debt. As most lenders check credit scores, our client was in serious risk of not securing finance by the time their settlement was due.

GCC Home Loans provided a solution through a non-bank lender, which did not require a credit score check. We facilitated the finance at 80% LVR, as well as offering a competitive rate for when construction was completed and settlement was 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. In most cases for this location, lenders are hesitant to lend due to its proximity to the mining region. In addition, our client had declared bankruptcy and had been discharged from their bankruptcy for less than 5 months. This created an extremely challenging situation for them to secure finance through a traditional lender.

GCC Home Loans negotiated their finance through a non-bank lender, securing an approval for 75% LVR. This was even more rewarding, as most lenders will not lend at this location and also due to the level of credit impairment our client faced. Our work behind the scenes and expertise allowed our client to purchase the property they desired, with their existing equity.

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, the client had a restructure of his employment and was only one day into his new role as an executive, through which he had acquired a percentage shareholding of his company.

Typically, lenders would deem someone in this situation as self-employed, as they have a shareholding of the company, thus requiring company financials and returns, as well as personal returns. Further impacting the borrower, funders require them to be in a specific role for at least 6 months, sometimes even more. Due to these requirements our client was in serious risk of losing the property, as he would have been unable to obtain finance, only 2 weeks out from settlement.

Through GCC Home Loans’ experience, network and expertise and after some 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 – making for one very happy client.

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 complete construction of a vacant investment property in South Australia. GCC Home Loans facilitated the finance for a six-month term, a $240,000 loan from one of our private lenders and the property was valued at $650,000 upon completion of project. GCC Home Loans was able to secure this finance option in less than a month, ensuring a satisfied and secure client.

Amount:              $240,000

Interest rate:     Indicative Only variable rate of 9%

Residential Property Finance

Jumbo Home Loan – $2.4 M Home in Sydney

Our client borrowed $2.4M to purchase an investment property in Sydney. GCC Home Loans successfully facilitated the finance required through a non-bank lender that offered 50% LVR, as well as a competitive interest rate.

Amount:              $2,400,000

LVR:                       50%

Interest rate:     5.64%

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 a lower LVR. However, GCC Home Loans successfully facilitated the finance through a funder that offers 80% LVR, as well as a competitive rate. The 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, leveraging their SMSF. The total net asset of the SMSF was $105,000, which is less than what most traditional lenders and banks require (the required range is usually $150,000 – $200,000).

GCC Home Loans were able to help by facilitating the finance via one of more than 450 lenders on our panel. Thanks to our assistance, there was no need for extra funds to be placed 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 the Brisbane metro area, leveraging their SMSF. One year later when construction was complete, the lending policies for SMSF had changed, meaning that organising finance through traditional channels and lenders was no longer possible.

GCC Home Loans facilitated the finance for this client, 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 a lending option is particularly helpful when the borrower’s property location is not acceptable to SMSF funders, or if the loan capacity of your SMSF alone is insufficient. We are experts at uncovering opportunities and options when often clients are told there are none.

Amount:              $388,000

LVR:                    80%

Interest rate:     4.79%

Lenders fee:       $8,410