At VMG, they pride themselves on their ability to support clients through even the most challenging financial situations. This case study exemplifies their commitment to providing personalised solutions that meet the unique needs of each borrower. In this instance, they worked with a husband-and-wife duo facing significant financial hurdles as they sought to complete the construction of their home. Through a thorough understanding of their income sources and careful consideration of mitigating factors, VMG was able to advance the necessary financing for them. Read on to learn more about how they navigated this complex case and helped their clients achieve their goals.
Customer:
Husband & Wife (62 and 63)
Loan Amount: $375,000
Purpose: Complete construction of their owner-occupied property.
Scenario:
The customers had funded the construction to the “lock up” stage via cash resources. They had been incorrectly advised by their builder to start construction before securing finance, not realising that a partially completed home would be difficult to raise a new loan for.
Outcome:
Allowable income was the biggest challenge with this opportunity. At first glance, servicing was unable to be demonstrated at 0.82 times. The husband had a stroke in 2014 and was paralysed, necessitating an understanding of his disablement payments, what was taxable and what was non-taxable, the wife’s carers payments (as she was his primary carer), and two forms of Centrelink pensions. Once VMG understood all income sources and were comfortable with their ongoing nature (evidence provided), they were able to service the loan.
Other mitigating factors included:
- Continuity of construction with the same builder.
- Low Loan-to-Value Ratio (LVR) on completion (less than 30%).
- Increasing pensions as cash at the bank had reduced due to construction expenditures.
- Approximately $430,000 in superannuation that could be used to extinguish the debt in the future.
VMG’s team is committed to providing exceptional service and support. If you have any scenarios to discuss or have further questions, please contact them at (03) 8600 7900.
Visit their website to Find Out More.
For more information, please download the latest Product Pack here and the Niche List here.
Refer to your VMG BDM to discuss any deals.
