Background
An elderly couple, aged 92 and 83, required funds to cover the remaining balance for purchasing a right-to-occupy unit at a dementia care village, which one of the applicants needed to move into urgently. The clients approached Avanti because they did not meet their mainstream lender’s criteria. They did not wish to sell their owner-occupied home at this stage, as the other partner wanted to remain in the home for a further 12 months before moving into the retirement village.
Challenge
The couple’s main bank declined their application due to the requirement for open-ended bridging finance, with funding being provided on a fully capitalised basis.
Mitigants
- Clients undertook independent legal advice before proceeding
- Unencumbered residential property with an LVR under 50% at the end of the 12 months
- The confirmed exit strategy was the sale of their owner-occupied home.
Solution
We provided a short-term bridging loan to support the couple’s transition to residential care, facilitating the urgent move while allowing the other partner to remain in their home for the desired period.
Loan amount: $202,000
Interest rate: 13.2% p.a.
Term: 12 months with capitalised interest
Avanti fee: $705
Adviser fee: $2,000
Commission: No commission paid as short-term lending
Rates and fees were valid at the drawdown of the specific loan facility in each case study, new loans are subject to the rate at application. A copy of our current rates and fees can be found here.