Steve is a First Home Buyer building his first home.
His Home Loan Scenario consisted of the following key facts:
Vacant Land Purchase
Pre-Approval for Construction
Eligible for the FHOG $20,000
Eligible for Stamp Duty Exemptions
Eligible for the FHLDS
Eligible for the Builders Grant – outside of their Lending scenario
Proposed end LVR 85%
Steve is a single applicant who was ready to build his first home. He is a fulltime Federal Government employee. As part of his salary package, Steve was able to have a Novated Lease (Car Loan Repayment) Salary Sacrificed through his pay.
We initially submitted his application to a major bank who has able to offer a place under the First Home Loan Deposit Scheme. After his Salary Sacrificing, this major bank advised the client has a $1,100 per month in his capacity to repay the proposed loan. Much to our shock – this was due to how they treated his deductions on his payslip for his vehicle. We then needed to source another lender – meanwhile his finance clause was due for the Vacant Land Purchase.
His Conveyancer was able to obtain a finance clause extension so we could proceed with another lender.
Our next stop was ANZ. Whilst ANZ did not offer the FHLDS, they do have a favourable policy for Salary Sacrificing – where the capacity to repay is assessed on the Net Pay not Gross Salary – after “all” of the salary sacrificing has been allowed for. ANZ did not need to view the Novated Lease Contract or repayments – as this is paid before is net pay is received. We ran the scenario past our BDM to ensure a good fit for our client. This same policy applies for clients with HECS; and removes the need for those My Gov. statements.
As we expected, his uncommitted monthly income from ANZ was able to show and pass and we were able to proceed to Formal Approval.
Steve now has the construction of his new home underway and has since referred another client through to TM Finance Group. Which was exactly how Steve found us – via an existing client’s recommendation (thank you Kristy! :) )
When we first spoke to Steve, we instantly knew we’d be able to assist him: he has an excellent savings history, employment history, income and a low-end Lending Value Ratio.
If banks were able to accept the Builders Grant as a similar model to the FHOG, he wouldn’t have needed LMI either.
Thankfully Steve was approved by the ANZ – and his Simonds home is now under construction.
Having a Broker to support you and a great BDM can make huge difference to people’s lives!