A married couple, aged 45 and 44, approached VMG seeking to refinance their home loan to consolidate debt and access additional funds for renovations. Despite facing recent challenges with their financial situation, VMG was able to help them secure the loan they needed.
Loan Details:
- Loan Amount: $320,000
- Purpose: Refinance, debt consolidation, and cash out for home renovation
- Dependants: 3 children (ages 11, 13, and 15)
Challenges Faced by the Clients:
- The wife had transitioned from full-time to part-time work, resulting in a reduced income, which led to arrears on their existing home loan.
- The husband had stable employment as a Farm Manager, with nearly 10 years of continuous service.
- Despite their efforts to keep up with repayments, their home loan remained in arrears, negatively impacting their credit history and resulting in a low Equifax score.
Recent Positive Developments:
- The wife returned to full-time employment in early 2024, restoring their combined income.
- The couple demonstrated their commitment to catching up on missed payments by making extra repayments towards the home loan arrears.
How VMG Assisted:
- They conducted a thorough review of the couple’s financial situation, including six months of transaction and home loan statements. This allowed VMG to observe consistent income deposits and home loan repayments, despite the arrears.
With both incomes restored, VMG could service the loan. Additionally, their demonstrated commitment to addressing the arrears gave VMG confidence in their intentions to bring their home loan up to date.
Outcome:
Based on the couple’s account conduct, restored financial stability, and a clear repayment strategy, VMG was comfortable approving a new loan for $320,000. This not only enabled them to consolidate their debt but also provided funds for much-needed home renovations.
If your clients face similar challenges with employment changes or arrears, contact VMG to discuss how they can structure a solution that works for them.
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