SME Blog & News

Success story - Property Lending

Our client (67 years old) presented us with an opportunity to assist. 

Since the 1970’s our client has run a very successful trading, distribution and wholesale business.

He has extensive world - wide connections built over many years of trading.

He had an existing Owner Occupied property located in South Melbourne valued at approximately $2,600,000 with an existing Mortgage to a Second Tier Lender for $1,292,500 at an interest rate of 5.69%.

Our client had contracted to purchase a new and upgraded Apartment to live in for $3,350,000 in Port Melbourne which was due to settle on 18 May 2018.

The client had placed an application with CBA on the basis of an Owner Occupier Loan to finance the new acquisition and provide a 2 year Investment Loan to refinance the South Melbourne property.

He required the Investment Loan against the South Melbourne property as he did not want to be a forced seller and would rather take a year or two to sell the property – this was a key aspect of the customer’s requirement.

CBA approved the finance for the purchase but only on the basis of our client achieving a sale of the existing property before settlement of the new purchase -this did not deliver what the customer wanted and created the opportunity for us to assist.

The challenge with this transaction was that any new Lender did not know of our client’s long and strong business trading track record and we had the additional challenges of the client’s age being 67 years old and whole range of income streams to consider and articulate:

  • Self Employed Income
  • Superannuation Income
  • Rental income (Projected)
  • Mobile Phone Tower Income
  • Investment Income

A great advantage of being a Mortgage Broker is that we  have developed strong relationships with our Lenders and can talk to them and really get across what our Customer’s needs are and match that up with the Lenders requirements.

Fortunately, we were able to structure a solution (from Heritage Bank) that delivered the following:

  • Owner Occupied Loan: $2,350,000 at 3.69%pa
  • Investment Home Loan: $1,292,500 at 4.09%pa

The client’s Investment Loan was for a period of 2 years – more than adequate for the clients requirement of at least 1 year to sell the South Melbourne property and reduce his debt overall.

The loan was approved on the above terms and our client was so delighted the day after settlement he and his Partner took a holiday in Fiji and will take up residence in the new digs in a month’s time.

To have a confidential discussion about your individual circumstances and to ascertain if we can assist with your property loan, call our property expert Brendan Barry-Murphy:

Phone: 0424 919 193 / (03) 8825 8888

Email This email address is being protected from spambots. You need JavaScript enabled to view it.

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