Venro recently worked with a family who were longstanding clients of a Big 4 bank. The family had received pre-approval for the purchase of their new home.
They entered a 60-day contract to purchase their new home, believing their finance was approved and they had a comfortable timeframe to make final arrangements prior to settlement. After the 90-day pre-approval from their bank expired, the family were shocked to learn that their bank would no longer approve their loan.
By this stage they had already committed to an unconditional contract for their new home they needed to settle on, or they would risk being pursued legally. Their entire deposit and the house that had taken a year to secure were at stake. To add to the stress, the lease of the rental property they had been living in was soon coming to an end.
For most lenders, a pre-approval is valid for 90 days. After this, it’s typically a quick process to approach your lender for a renewal. In this instance, that was not the case.
What went wrong?
The family’s primary income was through self-employment, as an equity partner of a professional services firm. Significant investment had recently been made by the firm and the bank considered these capex items as fixed costs, despite their one-off nature. As a result, the bank advised they were unable to approve the application as they could not show a positive servicing position.
Venro were engaged after the client received a recommendation from the banker at their current bank. The banker suggested seeking assistance from Rohan, who specialises in private clients and has a proven track record of being able to assist partners of professional services firms with complex income stream.
The solution
With tight deadlines, Rohan completed an in-depth analysis as quickly as possible. He worked with the client to compile comprehensive information that would avoid the issues that had occurred at the previous bank.
Rohan worked through the client’s financial information to gain a strong understanding of the business’s structure, operations, and historical trading figures.
He diagnosed the key characteristics that would shape a banks treatment of this application and compiled a shortlist of banks who would work with the client to provide an approval.
The chosen bank was selected based on their policies, interest rate and ability to approve the application quickly once submitted; providing the much needed assurance for our client who had already lost enough sleep.
Alongside the client and accountant, Rohan carefully crafted correspondence to address elements the previous bank had deemed adverse. The application was approved on the same day it was submitted, only a week after engaging Venro. A quick approval was made possible through a proactive client who provided all requested information promptly, detailed analysis and pre-work with the bank prior to submission and Rohan’s deep understanding of lender policy, much to the relief of our client!
Thank you Rohan for the exceptional support, advice and professionalism as you guided us through the application process. Your prompt responses, attention to detail and constant updates and advice made, an at times stressful experience, achieved with a minimum of stress and confidence as you navigated the banks and the process on our behalf. We appreciate the time and commitment you invested in getting us the best outcome. We feel confident Rohan has achieved the best home loan for our family’s situation. We highly recommend Rohan’s services.