PERTH & MANDURAH 08 9367 4222

08 9367 4222

Launch Finance recently assisted a valued client with the purchase of their second investment property after coming into a few roadblocks with their finance. On the clients’ loan application, their existing rental investment property was being used as additional security support for the full amount of the new purchase price plus the settlement costs.

The client received a valuation report on their existing investment property and unfortunately it had decreased significantly in value less than 6 months since its last valuation report. This led to a security shortfall in the bank value of the property and the deal was declined.

This is where Launch Finance stepped in and negotiated a deal that would help the buyer and seller. The seller needed to relocate back to Queensland for family reasons as soon as possible, so needed to sell the property quickly. Launch Finance suggested Vendors Finance to cover the bank security shortfall between the agent, seller and buyer.

The owner of the property (the vendor) agreed to lend 20% of the sale price to the buyer on the vendors’ terms of 6% interest rate over 10 years. The solicitor was then appointed to prepare a legal binding loan contract between the owner and buyer. Both parties paid $1,000 upfront for the preparation and execution of the agreement.

Launch Finance saved the client over $20,000 in Lenders Mortgage Insurance (LMI) as the client was able to satisfy the bank’s lending requirements of a minimum 20% deposit. The Bank approved the loan of 80% of the total value of the property, which led to a happy buyer, seller and agent all very happy with the settlement now completed.