Lower Mortgage Rate + $200K Cash Out -- Refinance Success During Coronavirus Pandemic

Home Loan Rate Reduction Success Plus $200K Cash Out During Coronavirus Pandemic

Mortgage Corp helped two home owners refinance to significantly reduce mortgage rate and secure $200,000 Cash

Client Background

Full time professionals, had their house for a few years

Objectives:

Secure a lower home loan rate

Get $200K cash out

Challenges:

Two banks already said “no” to $200k cash out

Solutions:

Identified two lenders that would give them the cash and also offer a low interest rate.

Get A Glimpse Of Mortgage Corp’s Process

“I first did a proper pre assessment to verify their income and liabilities to make sure they are eligible for refinancing.”

“I then did a property report on their home to get an estimate of the house value, so I had a good idea of their equity, and the LVR (whether it’s above or under 70%, 80%).”

“After that, I was able to narrow down 2 lenders, with one lender offering multiple offset accounts while the other didn’t.”

“I explained the benefits of having multiple offsets (i.e: husband and wife and children, each can open separate offset accounts if needed, all within one bank, with no extra fees, any money sitting in any of the offset accounts will reduce the interest on the home loan). “

“Clients chose the lender that offered the multiple offset option.”

Results:

Loan was approved within a month

Interest rate was reduced significantly

Got the $200,000 they really needed!

Mortgage Corp also put buffers in place so they had enough money in the bank for emergencies.

All of these were done remotely during this special time.

Home Loan Application -What To Expect During This Usual Time

With the unprecedented rate drops and coronavirus pandemic , you need to make sure you have all the docs in the right place otherwise, you’ll have major delays that can take months or worse case, your loan gets declined.

As you may know, a lot of banks have outsource to the Philippines, now they’re in lockdown, a lot of pressure is now put back on the Australian staff, which as we know, banks have cut down on staff over the years, they’re working from home under pressure.

Applications can take up to 30 days before they even get assessed. Valuations can get dragged out too.

We’ve had many clients coming to us because their loans got delayed for months due to docs not supplied in full at the start.

During this unusual time, banks will scrutinise borrowers more to make sure you’re still employed. They may ask you to supply bank statements or ask your employer to supply a letter. If you’re a property investor, this means banks will need to see that your rental income hasn’t changed.

If you’re looking at buying an investment property, you need to make sure you look for investment properties that you’re going to get tenants in and make sure the tenants will have his or her job and will be able to pay rent because under the current law, you can’t evict them if they can’t pay rent. You’ll still need to pay your mortgage.

Not fair, we know but new laws are coming out everyday, so things can change any day anyway, just need to keep on top of it, or work with someone like Mortgage Corp, who’s on top of all the changes. To make sure you get everything right the first time without suffering from the loss of money, time, opportunities, sleep … we invite you to book an Obligation Free Loan Strategy Consultation with Mortgage Corp today.

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