Client Overview
The client is a 33-year-old single, self-employed first-time home buyer with no dependents. The client had their eyes set on purchasing their first home and found a property worth $2.38 million that perfectly suited their needs.
Challenges Faced
The client aimed to borrow up to 90% of the property’s contract price to minimize the upfront costs. As a Barrister, the client was eligible for a Lenders’ Mortgage Insurance (LMI) waiver, providing an excellent opportunity to save on additional expenses. Additionally, due to the significant loan amount, the client wanted to explore fixing a portion of the loan to secure a stable interest rate for a specific period.
AS Mortgage Partners’ Approach
Understanding the client’s goals and unique financial situation, the team at AS Mortgage Partners devised a tailored strategy to fulfil the client’s requirements effectively.
1. Split Loan Structure
The team suggested a split loan structure to address the client’s objective of fixing a portion of the loan. This allowed the client to divide the loan into two components: a portion of the loan with a fixed interest rate and another portion with a variable interest rate. The approach allowed the client to enjoy the benefits of both interest rate types.
2. LMI Waiver for Barristers
The team conducted thorough research and identified a lender with favourable self-employed policies. This lender offered a significant LMI waiver of up to 90% for Barristers, aligning perfectly with the client’s situation. The LMI waiver enabled the client to avoid additional expenses typically associated with high Loan-to-value ratio (LVR) loans.
Results Achieved
The team’s expertise and careful selection of the right lender led to a successful outcome for our client.
1. LMI Savings
By leveraging the LMI waiver offered to Barristers, our client purchased their first home without paying for the Lenders’ Mortgage Insurance, even with an overall Loan-to-Value Ratio (LVR) of 90%. These substantial savings significantly reduced the upfront costs associated with home buying.
2. Flexibility with Loan Structure
The split loan structure recommended by the team provided the client with the desired flexibility. While the client initially considered fixing a portion of their loan to secure a stable interest rate, market changes influenced the decision. Ultimately, the client opted not to fix the loan, thanks to the advantages of the split loan structure.
Conclusion
The team at AS Mortgage Partner’s personalised approach and comprehensive understanding of our clients’ needs enabled them to purchase their first home confidently and financially easily. The client, who was a self-employed first-time home buyer, avoided unnecessary expenses by securing a lender with attractive self-employed policies and utilising the Barrister LMI waiver. The split loan structure also allowed the client to adapt to changing market conditions and align the loan with their financial goals.
At AS Mortgage Partners, we take pride in finding tailored solutions for our clients, ensuring their financial success and security. Check our services for the complete list of Business services customised to assist in your growth and development.