Earlier this month I received an urgent email on the weekend, it was a new client, who wanted buy a house on the market. It's always good to assume there is some urgency when they are emailing on a weekend, and the property is 'on the market'. Moving fast is important in this hot market we're operating in.
We met up on Monday, and discussed their existing broker, who had already told this client that their lender won't allow access to further equity in the existing investment property. The broker offered no alternatives. His information is true, I explained, APRA have capped their existing lender at 80% equity lends. The broker is right, but has offered no other options.
I explain that there are other options based on the rough figures we have to hand. This involves a minimum deposit lend, or, looking at a lender that will refinance and release equity out of their investment home. We discuss the various rates and fees involved. My client talked to their partner that night, and contacted me on Tuesday to say they love the house so much, they still wish to go ahead with the new lender. They ask what do they say to the agent? They're nervous.
I call the agent and get some great advice on what the current interest in the property is, and the fact that the clients need to make an offer, fast. I ask for up to two weeks to exchange, noting that we should be ready in a week, should their offer be accepted and he agrees. This is a great benefit to using a local broker that knows their local agents, if the broker is known to the agent, they will trust you when you say your buyers finance is sound, as they've experienced that track record from you before. As a result of the discussion to the agent the client makes an offer and it is accepted with some time allocated to arrange finance before exchange, the pressure and worry is off.
Now, it's simply up to us to make it happen and make it happen fast! We ordered both property valuations that day, and one bonus was, our lenders valuation was substantially higher than their previous lender. In fact, it was higher than the owners estimate, which is a sign of the times. The clients were fast to get information to us, so as a result, later on that week we had the full loan approvals from the bank for both refinance, equity release and purchase funds. Exchange could now proceed subject to their own solicitors requirements, and personal inspections.
This is one of the crucial differences when you have a broker working for you. Brokers are about options, not about brick walls or objections. Let us help you find a policy driven, rate driven, fee driven, solutions driven answer for you, whichever is your priority, we can show you how to navigate that maze.