Venro were recently contacted by an existing client who required funding to repay and close a home loan. He was also looking to borrow additional funds to finalise his divorce settlement.
The challenge was that the client is self-employed and his most recent tax returns had not yet been completed. Yet, despite not having all the documentation, having his new loan and the settlement completed within 60 days was paramount!
With this in mind we needed to ask:
- Is the current lender the best option?
- Is not having tax returns a hurdle we can jump over?
Traditionally self-employed lenders are required to provide their most recent two years tax returns when formally applying for finance. As these weren’t available, we had to source finance from alternate lenders. Despite the rush, due to responsible lending we still needed to verify with the client how they are going to meet repayments as we would never place anybody in financial hardship. Equally we have a responsibility from a best interest duty law to find a solution that is in their best interests.
The primary goal
After discussion we ascertained that the primary goal is to execute the transaction in line with the settlement date, enabling the client to move forward. The client’s current lender had removed their “Low Doc” product from their service offering, so to achieve his goals we were required to refinance with a new lender.
Some lenders have a niche policy, by verifying a self-declared income level from the applicant, accompanied with either an accountant’s letter, BAS statements verified over one year or bank statements over a six-month period.
The solution
With inside knowledge and access to a broad range of lenders, Venro were able to secure a new lender with only a slight increase in interest rate from the existing lender, whilst keeping the fees minimal.
Understanding the client’s goal was to secure finance by his settlement date, interest rate and fees whilst important, certainly weren’t the deal breaker.
We were able to provide approval and secure the finance, enabling the client to move on in a timely and cost-effective way.
“I was very impressed with the service I received from Steve and the team. I am self-employed and was able to obtain a low doc loan. I am over the moon with the result.”