InterPrac Mortgages Newsletter-April 2008
We have been running a campaign to assist your clients with reducing their debts, specifically their tax debts and, more recently, any of their high interest or short term debts. This campaign has had some wonderful results, so please keep speaking with your clients about their issues and if you think we can help send them to us.
Below, our consultants have detailed two recent cases where, I am proud to say, we have assisted clients to get over their past credit issues and get on with life comfortably.
Case 1
Clients Mr & Mrs D. have, for past 12 months, been trying to obtain funding for a home loan. After approaching 2 other brokers, loan submitted to mainstream lenders and declined on both occasions.
Clients were referred to InterPrac by a current client and, although doubtful and pessimistic, the clients thought they would try again.
Upon meeting Mr & Mrs D, it was obvious to the InterPrac consultant that they were weary of facing the loan process, however, all their information was obtained as required. Mr D. has 2 CRAA defaults comprising of a total of $6770 (These were made up of a Telco default and a court judgement which the client is still fighting)
The clients are currently living with Parents, have 2 small children of their own and were desperate to buy their own home.
The loan was submitted to a lender and pre approval was obtained at an LVR of 90% and an interest rate of 8.51% pa. Upon advising the client, Mr D was overwhelmed with the news and, in fact, broken down in tears.
Please note that with defaults of this nature, clients would normally be placed in loans that comprise of interest rates of 11% plus.
Case 2
Client, Mr M, made a purchase of an home valued at $1.45m and he required a loan of $1.015m (LVR of 70%).
He is a self employed professional and could only provide a letter from his accountant confirming his ability to pay the laon and a one page Profit and Loss statement for the previous financial year as he had not lodged his tax returns for 2007.
Mr M had a recorded 'paid' default of $3.7m and other 'unpaid' defaults totalling approximately $30k.
We found a lender who financed the purchase at a rate of 10.09% (Variable Rate) and also paid out all of the unpaid debts ($30k approx). The rate which the client received will step down after two years of good repayment history by 0.45%.
The client was grateful for the result as he was aware of the difficulty of obtaining finance due to his past credit issues.
We look forward to assisting you and your clients with both their difficult and simple finance arrangements.
Yours Sincerely
Brent Jones
General Manager
InterPrac Ltd
1800 700 666 (Phone)
1300 368 427 (Fax)