Case Study - Matt and Megan

Meet Matt and Megan...

Case Study Matt and Megan

Matt and Megan, a married couple from the Gold Coast have two children, both under 8 years of age.Thanks to a recent inheritance, they are debt free, and own their newly built family home outright. The home is valued at $620,000 and they want to use the equity in their home to withdraw $70,000 to furnish the property.

Five years ago Matt had a business that failed and he has since been discharged from bankruptcy on the 31st January this year. Matt has worked at the local supermarket on a permanent part time basis for the past 3 years. The family also receive Family Tax Benefits Part A and B plus a Centrelink parenting benefit.

They are looking for a lender who can assist them, as their Parenting Allowances would need to be used to service the mortgage.

The Solution

Based on the facts above, the broker suggested Pepper Money to Matt and Megan.

After reviewing their situation, Pepper Money was able to assist the family with a Near Prime Full Doc product. The benefit of this product is that it allows for discharged bankruptcy (> 1 day accepted) and FTB Payments Part A & B plus Parenting Allowances can be accepted at a rate of 100% as income for servicing.

Pepper Money’s cash-out policy allows for borrowing up to 85% LVR for acceptable purposes including renovations, business use and payment of ATO debts. Furnishing the property would be considered an acceptable purpose.

For income verification documents the couple would need to supply their latest Centrelink statement advising of benefits payable to them, and Matt’s last 2 pay slips along with one of the following:

  • Letter of employment
  • Tax assessment notice
  • Latest group certificate
  • 3 months bank statements showing wages receipts

Whatever the circumstances, if an application doesn’t meet traditional lending criteria, Pepper Money can provide a second opinion.

Pepper Money likes to look at a wide range of factors when assessing a home loan application. They do not simply tick boxes as many other lenders do, instead Pepper Money will get a more detailed and informed understanding before it starts making decisions.

Do you have a client with a similar scenario?

At Pepper Money we have a dedicated and highly experienced scenarios team who will review your scenario and respond in the same day.*

Submit a Scenario

or go back to the Case Study Hub

*for scenarios received by 4:30pm AEST

These case studies are based on real-life examples and have been provided solely for educational purposes. The case studies are not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Outcomes will vary depending on the applicant’s individual circumstances. All applications are subject to Pepper Money's normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply. Pepper Group Limited, Australian Credit Licence Number 286655, is the servicer of loans made by Pepper Finance Corporation Ltd ACN 094 317 647.