Melissa Gielnik, Smart Lending

Melissa Gielnik

I'm sold on Specialist Lending because...

"there's always a client whose needs cannot be met by a mainstream lender; it's a great product to have in your buffet."

Client case study

Last year, Smart Lending used specialist lending to help their clients of 6 years move forward when their own lender said they would not consider the application.

The Problem

  • Young couple are looking to raise funds against their existing owner occupied property to assist in the purchase of a larger owner occupied home.
  • They currently have their existing owner occupied property along with a medium sized (4) investment portfolio with a major lender.
  • Mr is a self-employed tradesman with ABN and GST registered over 2 years ago but only trading for the last 18 months. Mrs is PAYG.
  • Existing lender not willing to assist with the mortgage for purchase of a new owner occupied home due to the modest profitability of the new business and only 18 month’s trading history.
  • The concerns surrounding the income were compounded by existing high debt exposure connected with investment portfolio.

The Solution

Pepper has developed a strong expertise in analysing self-employed applicants, and were able to assist using:

  • Income declaration provided by the self-employed applicant, supported by last 2 quarters of BAS (via the ATO portal).
  • Total sales ($50k/quarter) showed turnover consistency, as evidenced through BAS returns. There was a healthy surplus between total sales and non-capital purchases.
  • This demonstrated the viability of the business and its capacity to assist with meeting overall finance commitments.

The Outcome

  • Pepper Easy Alt Doc 85% was offered to the couple.
  • The couple are over the moon as new home sits on an acreage which allows Mr. to store business equipment, saving costs on storage leasing.

Do you have a client with a similar situation?

Pepper Money may be able to help.

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Applications are subject to Pepper Money's normal credit assessment criteria and loan suitability criteria. Terms, conditions, fees and charges apply.