Background
A married couple with no dependents was looking to release equity of $25,000 from their owner-occupied property for a capital injection to assist with the growth plans they had for their business which they established 12 months ago.
Challenge
Their main bank wouldn’t consider a top-up to their existing mortgage or other loan until the client had been in business for two years with financial statements to support their application.
Mitigants
- Excellent repayment history on their mortgage
- Evidence of good account conduct for both personal and business accounts
- All commitments were being met
- A well-presented property in a good location
- Overall LVR 37%
- Clear credit checks
- Bank statements supported the servicing of the increased lending.
Solution
A Caveat Secured Personal Loan using the desktop valuation (no RV required) enabled the clients to implement their growth plans for their business.
Loan amount: $25,000
Interest rate: 16.5% p.a.
Term: Five years with both principal and interest
Avanti fee: $485
Adviser fee: $500
Caveat registration fee: $170 (Avanti Finance would register the caveat)
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.