Behind The Deal: Brighton, VIC | $2.5m

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When you need a quick turnaround and expertise because that dream home is on the line, you need a lending partner who can make it happen.

As far as residential mortgage refinance is concerned, this transaction was fairly complicated – and it needed to happen fast.

Read on to learn more about the recent Horizon Mortgage deal in Brighton Melbourne.

The details of the deal

Location

Brighton, VIC

Loan amount

$2.5 million

Term

30 years

LVR

63%

Purpose

Purchase

Product

Horizon Mortgage

Property type

Residential investment

We are always upfront with brokers, with what we’re doing and how we can solve any issues. And that’s how we’re able to get complex deals like this done on time – and help the customer succeed.”

Josh Tuohey, Business Development Manager

With a large block of land in a prime Brighton location, the borrowers saw an opportunity to secure their future. By subdividing the land, they could keep their existing residence as an investment property, and extract enough equity to purchase a better home in the same neighbourhood.

However, as company directors, they own their properties in a complex company structure for asset protection purposes. And they only had five days between the settlement of the subdivision and their new home.

A traditional lender would struggle to get across the subdivision valuation in that timeframe or assess the serviceability with a company entity holding multiple negatively geared properties. Plus the borrowers would not be able to organise their financial statements and tax returns in time.

So their broker turned to Assetline Capital. He knew our experienced credit team would be able to structure a flexible alt-doc loan, fast. And we did. Because we knew this wasn’t a straightforward deal, but we could see it was a smart strategy for the buyers – and our due diligence model is made to move quickly.

Unlike many mainstream mortgage lenders, Assetline Capital takes a commercial view of a borrower’s strategy and opportunity.

And we knew the risks were high if the couple couldn’t settle on time. Penalty fees for a purchase and refinance can add up very quickly if settlement is delayed. And these borrowers didn’t want to miss out on their perfect home. They needed certainty that their loan would be ready to go on settlement day.

Our credit team got to work immediately, reviewing the debts, investments and properties owned by the company to understand how we can use all income streams including negative gearing to service the loan. Valuation and title searches were further complicated by a subdivided corner block, creating two addresses. Yet just six days after receiving the documents, we had the loan ready for settlement.

Working closely with the broker through our FAST network partnership, we were able to provide their clients with a relatively seamless experience. And they are now enjoying life in their new home, with the certainty of long-term funding across their investment portfolio.

If you’d like to discuss a long-term Horizon loan scenario with us, please get in touch with our team.

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