Launch Finance recently assisted a first homebuyer who put an offer on a property without first seeking finance. The client had a very good income, good savings and had received some cash from a 3rd party to assist with the purchasing of the property.
After the offer was placed, the client then tried to organise the finance and unfortunately could not find a home loan lender that would grant him finance without providing more cash towards the deposit or paying a very hefty mortgage insurance premium.
Launch Finance met with the client and went through all the numbers and offered several options for the client, however none of the options seemed right. Through further consideration and asking the right questions, Launch Finance were able to determine that the clients parents may have been in a position to act as guarantors for the client.
We provided all the documentation for the client to give to his parents, which provided them the details of acting as a guarantor and what it entailed. The clients’ parents decided it may be a good opportunity to help their son in purchasing his home and met with Launch Finance to find out more.
We organised a private meeting with the parents, without the son present so that they could ask all the questions that would ultimately affect them if they were to act as guarantors. After the meeting, they decided to act as guarantors to help secure the property for their son.
Launch Finance offered 3 different lending products, each with different guarantor structures and their own rates and fees. Our client decided to go with the lender that offered the lower interest rate and the option to structure his home loan into two splits. This offered him a set repayment for 2 years and another split that allowed extra repayments to reduce the guarantor portion of the total loan as quick as possible.
Launch Finance assisted the client in saving $13,500 in lenders mortgage insurance and $2,450 in interest, just for the first year.
If you are a first homebuyer or know someone who is seeking finance for the purchase of their home, speak to one of our Launch Finance brokers today to find out how we can do the hard work for you and find the right loan product for you.