A Quick Overview
| Details | Description |
|---|---|
| Customer Goal | Get a pre-approval to purchase a home to live in with the help of the Family Guarantee Scheme (FHG) |
| Problem | Low deposit, has three dependents, multiple income types |
| Loan Amount | $320,000 |
| LVR and Term | 97.86%, 30 years |
| Income | $100,500 a year |
| Solution | Found an FHG participating lender with a flexible credit policy. |
Single Mother With Big Homeownership Dream
After renting for years, Jane dreamed of finally buying a home for her family, but as a single mum with one average income, she knew qualifying for a mortgage would be an uphill battle. One night, while browsing online, she came across homeloanexperts.com.au. Could this be her chance? Jane sent an enquiry, cautiously hopeful.
Challenges For A Single Mum Seeking A Home Loan
In the initial call, she shared her situation with our broker, Ajar Rajbhandari. As a single mother of three teenagers, each month was a financial juggling act, despite having full-time employment in the medical field. Though her income was stable, her earnings as a healthcare worker were modest, with little left over after providing for her family. And with rent increases stretching her budget even further, Jane desperately wanted to buy a home her family could truly call theirs. She had heard of the Family Home Guarantee (FHG) and wanted to know more about it.
Compassion Meets Expertise
As Jane mentioned the FHG with its 2% deposit option, Ajar saw a potential solution. In this scheme, if a single parent pays a 2% deposit, the government will guarantee 18% of the loan, allowing the borrower to avoid paying Lenders Mortgage Insurance (LMI).
Despite Jane’s limited savings and a single income, Ajar meticulously assessed her finances. Here’s where he found the positives:
- Jane had some savings that met the 2% deposit criteria.
- She received fortnightly child support. This can be used as income when servicing the loan.
- She received a Family Tax Benefit (FTB), which further reinforces her financial standing.
- Other than minimal personal debt, she had a clean credit record.
Recognising opportunities to showcase Jane’s consistency and reliability, Ajar started an exhaustive search for lenders willing to work creatively within the FHG criteria and with a flexible credit policy around child support and family tax benefits as income. He also promptly submitted an application on behalf of Jane to secure her place in the First Home Guarantee scheme.
The Achievement: From Hope To Homeownership
The wait was filled with anticipation, but the outcome was joyous. Ajar successfully secured a pre-approval for Jane at a 98% loan-to-value ratio and even managed to lower her interest rate. Finding a lender that offers the maximum borrowing power was not easy. However, after carefully evaluating numerous lenders, he identified the ones that provided the highest borrowing capacity and offered Jane her options. She was overwhelmed with relief and was glad she could now house-hunt with confidence.
Within 90 days, Jane found her home. Ajar’s perseverance turned this journey into a long-awaited opportunity for Jane to provide stability for her family.
Single Parent Looking For A Home Loan? We Can Help!
If you’re inspired by Jane’s story and ready to embark on your homeownership journey, our experienced mortgage brokers are here to guide you and support you every step of the way. Contact us today at 1300 889 743 or fill in our free online assessment form. Let’s transform your dream into reality together!