Recent client. Have been working with him for a while. He was looking to buy a new owner occupied property with the lowest LMI possible plus he did not want to use his own savings. This meant that we needed to refinance.
I told him we need to get this refinance organised so you are ready to buy. Of course he waits for the last minute, buys a house on the Saturday and then comes to me on the Monday and says we need to get the finance organised.
I told him that I could get everything ready within the 14 days finance clause. I started working on the refinance to get the funds ready for the purchase. I got it all ready and was preparing to submit when as I looking at statements for the supporting documents when I noticed that he had confused the loan amounts for the property we were refinancing.
Suddenly we went from $80,000 equity to $20,000. Now we still had the 14 day finance clause to meet. We looked at the other properties he owned and found another solution. This meant that we had to apply for another valuation and wait for the result as we need to know how much equity we could pull out. The valuation came back at a good price and we lodge the loan and got it approved in a matter of days. By now the finance clause is down to 5 more days. We lodge the other loan with 5 days to go.
And….we got the result! The client now has finance approved for a refinance which will give them extra funds as the deposit for their owner occupied dream home purchase. We have achieved what the client wanted with a structure that has reduced the overall LMI and all within the 14 day finance clause.