This was a couple that contacted me, after they had already been to the bank and been told that they cannot afford a home.
We will call them Mr & Mrs T
Our Clients Problem
The bank explained to Mr & Mrs T that they could not afford to be buying a home as their incomes were not enough to pay their existing debts and the mortgage too.
When I first looked at their mortgage application I could see why the bank might say that, but I could also see that there was an opportunity to help them.
My Solution Was
The main problem was the lack of affordability which was stopping Mr & Mrs T being able to get a home that was suitable. It’s a common problem of course, but in this case there was a good solution that just needed a bit of extra work.
First we had to deal with the debts that they had, and so we arranged a debt consolidation loan which was at a more favourable interest rate and also reduced their repayments.
This meant that we could get them a mortgage approval, but not to the level that would allow them to buy their home; however using the shared home ownership with First Home Partner they could get an extra $177,000 from Kainga Ora and that allowed them to spend $835,000 on a brand new home in New Lynn, Auckland.
Congratulations Mr & Mrs T
Contact me with your story and I will see if I can help you too.
