Couple Secures $985K Home Loan in Just 10 Days with a high DTI.
THE CLIENT:
Peter is a train driver based in Albany, WA, living with his partner. He also receives an ADF pension, having served in the Australian Defence Force. The couple already owned a block of vacant land and were ready to take their next step onto the property ladder.
THE CHALLENGE:
Peter and his partner originally planned to build on their vacant land, but valuation issues and significant earthworks made that path unviable for now. They pivoted to purchasing an established home while refinancing their land loan for a better rate.
The main hurdle was a high debt-to-income ratio, and the bank needed to accept Peter’s ADF pension as income. The only documentation available was a letter that was three years old, making it tricky to verify this income stream despite recent credits showing in his bank statements.
OUR SOLUTION:
Matthew Evans worked closely with the couple to find a lender that charged LMI at the lower end of the scale, minimising the additional cost while still giving them the flexibility to borrow above 80% LVR. Macquarie came through with a variable rate loan featuring both an offset account and redraw facility. Crucially, they could also meet the tight settlement timeline without compromising on a competitive interest rate.
THE OUTCOME:
Finance was approved in just 10 business days, well ahead of the 21 day contract finance clause. Peter and his partner secured a $985,000 loan for their $1,800,000 home purchase. They also locked in a lower rate on their existing land loan, freeing up savings to redirect toward their new home loan.
CLIENT QUOTE:
"You are the best! Thank you Matt & Aleisha!"
KEY STATS:
- $1,800,000 property purchase
- $985,000 home loan
- Finance approved in 10 business days
- 21 day finance clause met with 11 days to spare
- 5 month old pension letter secured approval
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