Shopping around your usual banks for a loan might seem like the simplest way, but what may seem like the most simple option is rarely the best.
What happens when you don't fit inside their very strict, very particular box?
We often have scenarios where our broker has achieved a much better outcome than going direct to a lender. Here's one of them, we've changed the name of our client to protect their privacy.
Ms Miller recently separated from her partner of 20 years and was excited to begin her next chapter in life independently.
Being mainly responsible for childcare and household duties during her marriage, she had only worked intermittently over the decades and was now casually employed with ongoing full time hours.
After renting for some time, Ms Miller was looking to purchase her own home for long term security. Unsure of her home loan options and looking to investigate her borrowing capacity, Ms Miller began enquiring with several lenders.
The Banks Said:
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The maximum loan term they could offer was 15 years, as she was over 50 years of age. |
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Due to the short loan term, she would have high repayments - well over what was affordable for her. |
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Additionally, the high repayments would restrict how much she would be approved to borrow. |
Often later in life borrower's needs are more immediate, and many lenders don't target this specific age bracket as their working years (and therefore ongoing secure income) are more short term.
After speaking with friends of her frustrations, Ms Miller was referred to GFS.
Upon further investigation of her circumstances, we were able to liase with a lender and negotiate approval based on her superannuation funding being sufficient to assist in loan repayments upon retirement.
We Secured:
| A long loan term, meaning decent borrowing capacity | |
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No establishment fees or valuation costs |
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Affordable repayments to get her into a home she loves for less than renting |
Sometimes it just takes some outside thinking and a good relationship with lenders to get a loan secured that doesn't fit in the standard box.
If you're needing to obtain a home loan or investigate your options, get in contact today.