At the outset of the loan application, three friends uniting to invest in an Australian property with the goal of solidifying their financial future. Nonetheless, challenges emerged during the application due to the trio's heavily leveraged financial standing. To surmount this, we devised a strategy to proceed by consolidating the purchase and loan application under the name of the individual with the most robust financial position. Our client was working as a freelance Digital Marketer at the time of the loan application. Her unique employment status set her apart from the typical borrower, as she did not have a conventional employment agreement or operate a registered business as a sole proprietor. Despite these differences, she was persisted to pursue a solo loan application and procure her inaugural investment property in Australia. Her primary objective was to attain the highest possible loan, strategically minimising the immediate out-of-pocket cash required at settlement.
Despite possessing the strongest financial standing within the trio, our client encountered a significant impediment in her pursuit for real estate dreams due to lacking consistent monthly pay slips and/or business financial documents to substantiate her annual income declaration. She was in search of a lender who could comprehend and embrace her unique circumstances when we first crossed path.
After delving into initial information about the three potential applicants, we discovered that she had the highest annual income among her joint borrowers, and this prompted us to encourage her to independently pursue the investment. However, the absence of standard income documents such as salary slips and audited financial reports, which are used to validate employment and income, impeded our ability to furnish substantial evidence to potential lenders, necessary for both compliance and loan application processes.
Armed with extensive research and leveraging our well-established connections with a network of lenders, our steadfast commitment led us to unveil a dependable lender who was willing to embrace our client's distinct financial circumstance and participate in this game-changing deal.
Through adept negotiation, we successfully secured several pivotal terms with the lender, including:
- Designating our client as a self-employed applicant, recognising her unconventional employment status for loan servicing; and
- Utilising the latest two years' individual tax returns to substantiate her annual income from employment.
With resounding success, we adeptly convinced the lender to assess the case based solely on personal income tax returns and individual bank statements, substantiating occasional commissions earned from her job. As a result, our client proceeded with the loan application as a sole borrower and successfully securing an impressive 75% LVR loan. The settlement drawdown occurred promptly, avoiding any penalties for delays. This achievement is a testament to our unwavering dedication and proficiency in navigating complex financial terrain with seamless efficiency.
The borrower constantly reminds us of her initial hesitation to follow our advice to proceed as the main applicant by also removing her two joint purchasers from the contract of sale prior to having any offer of credit in hand.
Following a streamlined and smooth settlement process, our client exuded gratitude as we deftly navigated her unconventional financial circumstance and addressed the absence of traditional income documents. Our dedication to finding practical solutions has culminated in the full disbursement of the loan, empowering her to witness the transformative impact of her investment. Steady monthly rental earnings now harmoniously align with the loan instalments, propelling her towards financial prosperity.
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