The Crottys' Low-Doc Loan Journey
Summary: Can I Get Approved For A Home Loan If I Have Limited Income Verification?
| Details | Description |
|---|---|
| Customer | Finn Crotty and Olivia Crotty |
| Broker | Ajar Rajbhandari |
| Purpose | To purchase an investment property |
| Loan Amount | $991,087 |
| Security | Property 1: $620,000 Property 2: $620,000 |
| LVR (Term) | 79.92% (Including risk fee of $15,000) |
| Interest Rate | 6.94% (standard variable) |
| Income | $900,000 (MA) + $151,360 (FA) |
Background
Finn and Olivia Crotty are returning clients of Home Loan Experts. They already have a successful property investment portfolio with multiple holdings and are seeking to expand it further by acquiring two additional investment properties.
Both Finn and Olivia have strong financial profiles. Finn earns an annual income of $900,000, while Olivia contributes $151,360 annually. Although their business is registered in Australia, their income is primarily generated from overseas activities, highlighting their global reach.
Problems
The Crottys faced a roadblock in securing a loan due to a combination of factors. The primary challenge stemmed from Finn’s income source. It originated from a trust, making it difficult for lenders to verify his consistent earnings. Traditional loan applications rely heavily on documented income, which the Crottys lacked. This led them to seek a low-doc loan.
Further complicating the situation was that the business only recently started generating income. Even though the trust itself had been established on April 30, 2020, the company operating within the trust, responsible for loan repayments, had been functional for only five months at the time of the Crottys’ application.
The trust structure meant that all income and expenses flowed through it, adding another layer of complexity. Finn also received dividend payments as a company director, creating an additional source of income that needed to be considered.
Solutions
The Crottys’ loan application was a tangled mess, so they reached out to Home Loan Experts’ Mortgage Broker Ajar Rajbhandari.
Ajar’s first move was crucial. He bypassed the rigid requirements of traditional lenders by finding a niche lender willing to consider short-term self-employment income verified by an accountant’s letter. This eliminated the hurdle of tax returns, a major obstacle for the Crottys. Furthermore, this lender catered specifically to low-documentation loans, dividend income from a company overseas, and even loans involving trust structures – which all suited the Crottys.
Ajar understood that securing the best possible terms was as important as approval. He negotiated a competitive loan package, making the offer even more attractive for the Crottys. Then, he went a step further by weaving a compelling narrative for the lender around their financial strengths. He highlighted their strong asset portfolio and presented a well-defined exit strategy, reassuring the lender of the Crottys’ ability to repay the loan despite the non-traditional source of income and short business history.
In the end, the Crottys secured a favourable deal with a loan-to-value ratio (LVR) of 79.92%, a variable interest rate of 6.94%, and a total loan amount of $991,087.
Happy Ending
Thanks to Ajar’s diligent efforts, Finn and Olivia were thoroughly satisfied with the exceptional service Home Loan Experts provided. They expressed their intent to refer friends and family to Ajar, confident in his ability to handle even the most complex financial situations.
Are You Looking For A Low-Doc Option?
you have trouble gathering all the documents needed for a traditional home loan? Don’t worry – we can help!
Our experienced, dedicated mortgage brokers understand that not everyone has the typical paperwork readily available. They’ll work closely with you to find the best low-doc option for your unique situation.
You can reach us at 1300 889 743 or complete our free online assessment form.