Some examples of clients we have helped to restructure their lending facilities to take greater advantage of the products to manage their affairs. Names and details have been changed for privacy reasons.
Case 1 – Refinancing a self employed applicant. Mr and Mrs Borrower had a business that was slowly recovering from the global financial crisis. They had low personal incomes and an accountant who made use of every opportunity to get them the lowest taxable income for their companies and trusts. Unfortunately, that means they could not easily evidence their income for servicing. By using all available add backs, analysing and dissecting the financial statements, we were able to identify genuine income opportunities to enhance their borrowing capacity. We were able to refinance their existing home loan, and raise an extra amount for investment to bring their facility to nearly $1million.
Case 2– Identifying the home loan. Mr and Mrs Refinance had a loan of $760,000. The rate we identified to apply to their loan meant a saving of about $8,000 per year. But, their loan was a single loan, even though the purpose of the borrowings was to invest in their business, own some shares, and include their home debt. We analysed their current loan documents, and the previous loan which was refinanced 7 years ago, and were able to identify the non deductible component for their home loan and the tax deductible component. We split the loan into its components so that all income could be paid off the home loan, the investment loan would be interest only and the business loan was a line of credit used to fund the business. Their home loan component was paid off within the next 12 months.
Case 3 – identifying the savings. Mr and Mrs Cash had a normal home loan with a small amount owing being $230,000. They had been with the same lender for about 15 years and had always thought their loan was competitive. When initially asked about their rate, they assumed it was competitive. But, once they looked at their statements, and comparisons were found, we were able to save them $2700 per year by refinancing to a better facility which also gave them a line of credit to invest in some shares and buy a small investment unit in the CBD of Sydney. The process took about 2 weeks start to finish, and now they couldn’t be happier.