Background
A couple, where the husband has a terminal illness, needed to be closer to family for support. They had unconditionally sold their home in a small North Island town. They found a new family home in another town, but their existing main bank refused to support the purchase due to past mortgage repayment arrears.
Challenge
The key challenge was ensuring the couple could afford the new mortgage on the wife’s relocation / transfer employment offer (same full-time hours and income) and the husband’s sickness allowance. With a strong network of support from family and friends, we were confident that they could service the borrowings. Through a detailed application and a strong write-up from their Mortgage Adviser, we understood the couple’s needs and were able to provide the help they required during this difficult time.
Mitigants
- Good LVR at 68%
- Positive affordability, with a favourable UMI position
- Clear understanding of the challenges the couple faced
- A compassionate, strong couple in a truly tragic circumstance.
Solution
We were able to offer them a long-term, 25-year Near Prime first mortgage, allowing them to relocate and settle into their new family home closer to their support network.
- Loan amount: $330,000
- Interest rate: 7.65% p.a.
- Term: 25-year First Mortgage
- Avanti fee: $705
- Adviser fee: $3,300
- Commission: 0.80% with a 24-month clawback period
- LVR: 68%
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.