At Finance House Group we’re committed to helping accountants meet the financing needs of your clients. Your unique perspective and in-depth knowledge of their situations, coupled with our knowledge of the lending industry, and the relationships we’ve developed within it, mean we’re able to serve borrowers with the best possible scenario for them.
In this series, we’ll highlight some of the interesting, exciting, feel-good examples of finance deals our specialists have been able to close.
This week’s deal is from a client in Melbourne, who came to their accountant at the 11th hour of a property purchase with a finance deal that had been declined. Already up against the original financing deadline, this client was close to losing their chance to acquire a new property.
“When the accountant referred this deal to me he knew that the deal was previously declined on the basis of serviceability issues,” Deval explained. “They were happy to consider low doc loan options at higher interest rates at this point, because they did not want to miss out on the beautiful house that they put an offer to purchase.”
Both the accountant, and Deval knew that this client had good servicing, and so Finance House Group committed to finding a conventional, full-doc lender that would take into account the full picture.
The problem, for the original lender, was that they weren’t able to consider the client’s annual bonus as part of their income, and that the lender was applying liabilities of the client’s restaurant partnership among the client’s potential costs. Those two factors led to the initial decline.
Deval went to work looking into the rejection notes, the client’s financial documents, and finding a way to compile the story. With time pressing, Deval was able to find clever ways to satisfy the lender’s queries.
“I wanted to turn the previous rejection point into the strong point for my application,” said Deval.
“The lender wanted proof for 2 years’ worth of bonus income, but the client had payslips to confirm the bonus for 2020 only.” In the end, previous year banking records showing deposits for the bonus income, paired with meticulous notes from the broker satisfied the lender of the income.
Attention then turned to the busines partnership. The previous lender was concerned that responsibility for any liabilities in the partnership would fall on the client and make it impossible for them to meet their obligations on this new loan. “In addition to that I provided accountant’s letter and latest BAS statement for partnership to prove that partnership business is running profitably and self-sufficient to take care of its own liabilities,” said Deval.
In what can only be described as a nail-biter, Deval was able to secure a positive assessment from the lender on the final day of the settlement deadline.
“The deal was referred to me on 27-Oct-2020, it took me a week to get all documents from the client and in the following week I discussed this scenario with several lenders. The deal was re-lodged in mid-November and formally approved Dec 1. In a time where most lenders take 10 days just to pick up the file, I got this deal formally approved within 2 weeks. That is mostly because of the exceptional support from the Business Develop Manager, who helped me because of the rapport that I have built with their team over my career,” Deval explained.
And the client?
“When I called the client, to inform her that the loan is formally approved, her excitement was out of the world,” Deval beams.
“That’s the best part of my job, getting people the dream house they want.”
To find out Finance House Group can help you serve your clients and grow your practice with its own, in-house financing arm, contact us today.