Why this first home buyer is very happy

Posted by Paul Ryan • 26 March 2015 • Tags:

At a time of considered debate around the property boom and the difficulty for first home buyers to enter the market it is nice to share a case study that may provide some guidance and hope for people in a similar position.

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Seasoned mortgage broker Peter Ritchie from intouch Mornington was presented with a scenario of a young customer who only had $7,000 in savings but was desperate to get off the rental treadmill.

The customer had found a property they wanted to buy however with the purchase price in the vicinity of $400,000 and limited savings, the budding property owner was becoming increasingly frustrated with the number of road blocks in front of them.

On first inspection Peter was able to establish the customer’s income meet lenders serviceability assessment requirements and the rent they were paying would be consistent with the monthly mortgage repayments.

So instead of creating further road blocks, Peter wanted to understand if a family guarantee was available. It was however it was important to include all parties in the discussion to outline the strategy.

Many lenders tend to steer clear of family guarantees in similar circumstances however after contacting several business development managers and lenders Peter was able to find a lender (one of the majors) prepared to look at the deal based on;

• The customers ability to service the loan

• The mortgage repayments not exceeding what the customer had been paying in rent

• The stability of the customers employment and income

• The family guarantee including a property as security

With the application presented the upshot is the loan was approved and settled by the Bank and the customer is delighted to be in the comfort of their own home.

There is a craft in being a mortgage broker and this is a classic example of how a quality mortgage broker can make a real difference.

Kudos to you Peter and congratulations to this first home buyer