Amanda’s goal was to find a lending solution that would allow her to keep the family home without putting her under financial stress.
When Amanda came to us we did some quick assessments and research and were able to give her some hope. We had several lenders on our panel that would accept her pensions as useable income when assessing her loan.
However, by moving her lending to another bank we would incur LMI (Lenders Mortgage Insurance) and this would make her lending more unaffordable.
With further investigation we discovered both of Amanda’s parents still worked, earning decent incomes and held considerable equity in their home. They wanted to help her through her separation period. We organised a meeting with them and Amanda and devised a strategy.
We proposed that Amanda move her home loan to our lender that would accept her government pension income. We also suggested that with our assistance her parents take out an equity release on their home and provide her with a small, early inheritance gift.
We successfully extended Amanda’s parents mortgage and gave them access to cash funds that they then gave to Amanda to reduce her home loan. After lowering her LVR we were then able to move Amanda’s home loan to a lender that would accept her income. Her refinance application was successfully approved.
Our financial guidance and strategy allowed Amanda to:
- Keep the family home and maintain a stable environment for her children.
- Reduce her debt to a more affordable level and avoid paying thousands of dollars in LMI.
- Rely on her government support and avoid going back to full-time work while her children were young.
