Case study: Story of a home for three generations
After her divorce, Rebecca decided to buy a house she, her mother Denise and her son Oliver could live in. FinanceCorp was able to help, even though the family didn’t have a big deposit.
Rebecca Miller was in her late 20s when divorce led her and her young son Oliver to move in with Rebecca’s mother. Determined to turn a bad situation into a good investment, Rebecca decided to use the divorce settlement as a deposit on a new home.
Although Rebecca’s mum Denise was in her early 60s, her stable income meant she would manage repayments, and Rebecca would continue to work part time while Oliver is young. When he gets older, Rebecca expects to work full time, taking over the repayments as Denise prepares for retirement and has more time to care for her grandson.
When the three generations took their case to the bank, they learned they did not have a large enough deposit. The bank would only lend a maximum of 80 per cent of the value of the home, and that wasn’t enough. So they visited their local FinanceCorp Finance Manager.
“As a broker, I was able to look outside the box at a nonconforming loan,” the finance broker says. “We were able to look at a different lending institution as opposed to the standard lender that needs to cap the ratio.
“I was able to advise them, based on a 95 per cent lend, what they might be able to afford,” he says.
Even at a high loan to value ratio of 95 per cent, and with LMI and stamp duty, their repayments will be less than $500 per fortnight, a 55 per cent saving on what they are paying now in rent.
The family is now looking in greater Sydney for a dream home.
Find a FinanceCorp Finance Manager who can help you find the best loan for your needs. FinanceCorp.com.au
This case study was provided by Greg Uehling of Tandem Uehling, Neutral Bay, NSW.