Tom and Jenna’s primary goal was to get their loan approved on time. They also needed to apply for the first home-owners grant and hoped for an affordable interest rate.
We sat down with Tom and Jenna and immediately assessed the urgency of their impending finance deadline.
We looked further into their situation and discovered that while they had savings behind them, their deposit, even with the inclusion of the first home-owners grant, wouldn’t reach 20% of their purchase price. This meant that they’d be charged over $10,000 in LMI (Lenders Mortgage Insurance) at settlement.
Our immediate course of action was to contact several of our banking contacts and find out which lenders would let us fast-track their approval time-frames.
We also inquired into both Tom and Jenna’s parents to see if either would be willing to assist them with their home loan by providing a family guarantee. It just so happened that Tom’s parents were happy to help and their existing mortgage was with a lender that we’d confirmed had quick approval timeframes.
We proposed that Tom and Jenna take out a family guarantee loan with the same bank that held Tom’s parents’ mortgage, to allow quick approval and significant LMI savings.
We collated their information and submitted their application the same day as our initial meeting. We contacted the lender and fast-tracked the application by two days to meet their finance deadline.
Our financial guidance achieved five things for Tom and Jenna:
- Their loan was approved by the finance deadline.
- They saved over $10,000 in LMI costs.
- They received a lower interest rate than they were originally offered by their existing bank.
- Their first home-owners grant application was successfully submitted and approved.
- They were given financial peace of mind and moved into the house of their dreams.
