Applicant and her partner wated to purchase their first home however only had enough to cover a 5% deposit plus costs, and between them they had 3 small defaults on their credit file therefore limiting their borrowing capacity at 95% LVR with Lenders Mortgage Insurance.
The homebuyer’s parents were happy to assist their daughter and her partner however were reluctant to provide personal grantees and wanted to protect the additional 20% they were providing.
Solution: We provided the applicants with our residential Full Doc Loan to 80% LVR (on 1st mortgage basis), and then provided a further parent to child (P2C) Loan to 100% LVR utilising the parents’20% contribution on a peer-to-peer basis, secured by a registered 2nd mortgage to facilitate the purchase. There were no guarantees provided by the parents, and their 20% contribution was invested by Green & Gold, secured by way of a 2nd registered mortgage over the applicant’s property to protect their interest.
