How $570K Equity Growth Helped Them Remove Their Guarantor

Where They Started

Milla Folingsby and Declan Kraegen, a de facto couple with two young children, had put a lot of effort into building their financial future. Like many first-homebuyers, they originally used a guarantor loan to buy the home of their dreams, paying $830,000 in February 2023. This made them able to provide a secure and cosy environment for their expanding family.

The couple’s financial status improved with time, and the value of their property increased. In August 2024, they were prepared to take the next major step, which was to remove the guarantor and refinance to gain more autonomy and power.

Overcoming Obstacles

Despite their progress, Milla and Declan encountered a number of difficulties while refinancing:

• Guarantor Removal: Freeing the guarantor was a top priority, as it symbolised their financial independence; however, not all lenders welcomed refinance applications that included removing a guarantor.
• Valuation Accuracy: Ensuring that the property’s value appreciation would be recognised was critical to securing good loan terms.
• Favourable Loan Terms: They needed a competitive interest rate while maintaining key features like an offset account, extra repayment flexibility, and a redraw facility to keep their family’s finances adaptable.
• A Streamlined Process: Milla and Declan, who were balancing work, family life, and this financial milestone, wanted a smooth, hassle-free process.

The Guiding Light

Home Loan Experts Mortgage Broker Siddhartha Dhar Bajracharya, stepped in to help the couple. He made sure they felt supported and confident as he handled their refinancing journey with skill and compassion.

Here’s how he approached the situation:

• Personalised Valuation Strategy: Recognising the potential in their property, Siddhartha conducted an online valuation in August 2024, which revealed its value had risen to $1,400,000, an impressive $570,000 increase (68.67%) from its purchase price of $830,000 in February 2023. This remarkable growth reduced their Loan-to-Value Ratio (LVR) to 60.50%, simplifying the refinancing process and enabling the removal of the guarantor.
• Tailored Lender Match: He identified the best lender for the couple, which could accommodate their requests for family-friendly loan features, guarantor removal, and refinancing.
• A Competitive Loan Package: He secured an $847,000 loan with an interest rate of 6.04% over 30 years, incorporating features like an offset account, redraw facilities, and allowing extra repayments.
• Continuous Communication: By keeping lines of communication open, answering concerns right away, and overseeing every part of the application, Siddhartha made the process run smoothly. Knowing that their broker was constantly ahead of the game gave Milla and Declan comfort.

A New Chapter

Declan and Milla were overjoyed when the refinance was finalised in August 2024. The formal removal of the guarantor represented their newly acquired stability and independence. The pair showed their heartfelt gratitude for Siddhartha’s support. They appreciated his ability to handle complicated issues with a personal touch, giving them confidence and control throughout the process.

“For our family, this feels like the beginning of a new chapter. We’re deeply thankful for the care and guidance Siddhartha showed us. He genuinely cared about what this meant for us, not just the numbers,” Milla stated.

The couple is eager to explore additional options, like home renovations or perhaps investment, now that their finances have been improved and they have equity available for future usage.

Let Us Guide You!

We believe that people can become financially independent with the correct support and knowledge. Whether you want to investigate equity release possibilities, remove a guarantor, or refinance, we can assist you in proceeding through the process with care, simplicity and confidence.

Call us on 1300 889 743 or fill out our free online assessment form to get started, today!