A client burdened by seven separate loans and a low credit score of 25...
Read More
1. Debt Consolidation for a Client with a Low Credit Score
Loan Amount
$508,000 (Debt consolidation of 7 loans)
The Challenge
A client burdened by seven separate loans and a low credit score of 25, sought debt consolidation through a broker. Despite all loans being current, multiple lenders declined assistance due to the client's credit profile.
The client faced overwhelming financial stress, with rejections from four non-conforming lenders citing excessive debt load and failure to meet servicing requirements, leaving them without viable options.
How VMG Helped
VMG assessed the case with a non-risk-scoring approach and issued an indicative approval the same day. This allowed for the consolidation of the client's debt, reducing their monthly payment by $525 and providing a more manageable financial structure.
$750,000 (Assist with the purchase of an owner-occupied property)
The Challenge
An applicant transitioned from PAYG employment to self-employment within...
Read More
2. Supporting Loan Approval for a Self-Employed Applicant with Limited Business History
Loan Amount
$750,000 (Assist with the purchase of an owner-occupied property)
The Challenge
An applicant transitioned from PAYG employment to self-employment within the same industry. With an ABN registered for only 8 months, the applicant sought financial assistance for purchasing an owner-occupied property.
To support their application, they provided us with the following documents:
3 x Business Activity Statements (BAS)
Management accounts for the business
3 months of banking statements
How VMG Helped
VMG adopted a flexible, comprehensive approach by carefully reconciling the provided financial documents. We assessed the applicant’s business performance using the BAS, management accounts, and banking statements. After evaluating the financials, we were able to demonstrate the applicant’s ability to service the loan. VMG approved the loan, enabling the client to purchase their desired owner-occupied property despite the challenges presented by their brief self-employment history.
$1,600,000 (Refinance of investment property, refinance of land loan, and construction of a retirement home on the land being refinanced)
The Challenge
A couple aimed to refinance their investment property and land loan while obtaining...
Read More
3. Overcoming Income and Rental Income Challenges for Refinancing and Construction Funding
Loan Amount
$1,600,000 (Refinance of investment property, refinance of land loan, and construction of a retirement home on the land being refinanced)
The Challenge
A couple aimed to refinance their investment property and land loan while obtaining funds to construct a retirement home on the refinanced land. The wife, however, had sustained a shoulder injury and was on work cover, receiving a reduced income.
Income Uncertainty: Due to her injury, the wife was receiving 75% of her salary ($63,750 instead of $85,000), with no definite return-to-work date.
Inadequate Servicing: Traditional servicing methods couldn't demonstrate sufficient income to meet loan repayment obligations, as both the wife's reduced salary and the rental income from the investment property were lower than expected.
Investment Property Rental: The investment property in Metro Melbourne was rented to their daughter for $400 per week, significantly below the market rate of $650 per week, as confirmed by a rental appraisal.
How VMG Helped
Wife's Salary:VMG accepted the full salary of $85,000 for the wife, even though she was receiving a reduced income due to her injury.
Rental Income: Rather than applying the typical 80% of market rental for the investment property, VMG allowed 90% of the market rental value ($650 per week) to be used in the servicing calculation.
Superannuation: The husband’s super policy worth $1.5 million was considered as an additional asset, providing further financial reassurance.
sought to consolidate eight separate loans after experiencing financial strain...
Read More
4. Debt Consolidation for a Tradesperson Overcoming Financial Strain After Separation
Loan Amount
$552,000 (Debt consolidation of 8 loans)
The Challenge
sought to consolidate eight separate loans after experiencing financial strain following a separation from his partner.
Debt Burden: After the breakup, the applicant became solely responsible for repaying eight individual loans.
Payment Struggles: While he initially managed the repayments, rising interest rates made it increasingly difficult, resulting in late or missed payments.
How VMG Helped
VMG took a compassionate and comprehensive approach to understand the applicant’s circumstances. We acknowledged the applicant’s efforts to manage his debts and improve his financial position. By consolidating all 8 loans into one, we were able to significantly reduce his monthly repayments by $1,290, putting him in a better financial position.
A part-time cleaner and Uber driver from NSW sought pre-approval to purchase...
Read More
5. Overcoming Income Verification Challenges for a Dual-Part-Time Worker Seeking Investment Property Purchase
Loan Amount
$600,000 (Purchase of investment property)
The Challenge
A part-time cleaner and Uber driver from NSW sought pre-approval to purchase an investment property, relying on dual part-time income streams.
Income Verification Challenges: The applicant's multiple part-time jobs made it difficult to provide standard proof of income.
Cleaning Job: While two recent payslips were provided, they were insufficient to fully assess income stability.
Uber Earnings: The applicant was unable to provide official Uber statements, leaving this income unverified.
How VMG Helped
VMG calculated an annualised income from the cleaning job based on the two payslips provided, considering 48 weeks of work to account for fluctuations and annual leave.
Although no Uber statements were available, VMG extrapolated data from 7 months of personal bank statements showing salary credits from Uber earnings. We calculated an annualised figure from these deposits to verify the income.
The proposed rental income, based on a rental appraisal letter, was used and shaded at 80%. Additionally, we incorporated the negative gearing addback into the application to further support the applicant’s financial position.
A family trust, which owned multiple trading businesses, sought financing...
Read More
6. Simplifying Loan Approval for a Family Trust Purchasing a Wholesaling Business Amid Complex Financial Structure
Loan Amount
$605,000 (Purchase of a business)
The Challenge
A family trust, which owned multiple trading businesses, sought financing to acquire a wholesaling business from retiring vendors.
To support their application, they provided us with the following documents:
Complex Financial Structure: The applicants’ group structure involved multiple entities with both personal and business debts, making the financial landscape intricate.
Debt Servicing: While the applicants were successfully managing debt across their existing businesses, assessing their overall financial position was challenging due to the interrelated commitments among various entities.
How VMG Helped
VMG adopted a focused and pragmatic approach to resolve the situation:
VMG assessed the new loan amount solely based on the vendor's financial statements, isolating this purchase from the applicants' other business operations and financial commitments.
We also added back $100,000 worth of dividends paid by the vendors that were previously considered part of their wages, enhancing the financial picture.
We were confident that the existing business and personal debts were being serviced by the respective entities, and as such, did not need to factor in those obligations when assessing the new loan of $605,000.
By isolating the new loan request and focusing on the vendor's financials, VMG was able to approve the purchase of the business, even amidst the complex financial structure of the family trust.
Initially $1,500,000, offered $1,700,000 (Purchase of residential investment property)
The Challenge
A 61-year-old male applicant, based in regional NSW, is the Group Principal for 12...
Read More
7. Overcoming Financial Complexity to Secure Financing for a Residential Investment Property Purchase
Loan Amount
Initially $1,500,000, offered $1,700,000 (Purchase of residential investment property)
The Challenge
A 61-year-old male applicant, based in regional NSW, is the Group Principal for 12 corporate entities. He works as a consultant, assisting distressed businesses with voluntary administrations, insolvency trading, and bank restructures. The applicant sought financing to purchase a residential investment property, requesting a loan of $1.5 million.
The applicant’s complex group structure presented challenges, with most of the businesses facing financial losses, leaving only one entity reporting a net profit of $180,000.
A significant portion of the corporate entities had net losses up to June 2023, complicating the demonstration of sufficient income to support the loan.
Servicing Difficulty: Despite the business challenges, the applicant needed to prove enough servicing capacity to meet the loan requirements.
Additional Personal Commitments: The applicant also had personal mortgage obligations, further complicating the servicing assessment.
How VMG Helped
Addbacks and Net Profit:We used the net profit of $180,000 from the one profitable entity, along with various addbacks from the other entities totalling $540,000, to enhance the applicant's income.
Rental Income: VMG included rental income from the applicant’s 5 existing investment properties and the future rental income from the new property, shading the rental income at 85%.
Negative Gearing Addback:The negative gearing addback was also factored into the calculation, strengthening the income position.
Exclusion of Corporate Debt: Although the applicant had other business-related debts, we excluded these from the servicing calculation as they were not the responsibility of the applicant personally.
Loan Terms:We offered 3 years of interest-only repayments, followed by a principal and interest repayment schedule over the remaining 27 years, for a total loan term of 30 years.
By utilising these methods, VMG was able to approve a loan of $1.7 million, exceeding the applicant’s initial request and providing him with a more favourable financial position than expected.
$1,800,000 (Purchase of owner-occupied property following the sale of business)
The Challenge
The applicant, along with their business partners, established a niche...
Read More
8. Using Future Business Sale Proceeds and PAYG Income to Secure Financing for Property Purchase
Loan Amount
$1,800,000 (Purchase of owner-occupied property following the sale of business)
The Challenge
The applicant, along with their business partners, established a niche alcoholic drinks business, which was sold to a major bottle shop entity in 2023. The sale was structured in three tranches over a five-year period, with the first payment received in October 2023. In addition to the sale proceeds, the applicant was retained as a PAYG employee by the purchasing entity, earning $150,000 annually.
Future Income Stream:The business sale was structured to pay the proceeds over five years, with only the first payment received in October 2023.
Dependence on Tranche Payments: While the applicant had a stable PAYG income, the future income from the business sale was critical to their ability to service the loan, but they had not yet received the full amount.
How VMG Helped
Inclusion of PAYG Income: We included the applicant’s current PAYG salary of $150,000 per annum in the servicing calculation, ensuring we captured the immediate income available to them.
Future Income Stream: We recognised the future income from the business sale tranches as part of the applicant's financial picture. With confirmation from the Business Sale Contract and an accountant’s letter verifying the details of the transaction, we were able to include the future tranche payments in the servicing calculations.
Comfort and Certainty: By considering both the PAYG income and future business sale proceeds, VMG was able to provide the applicant with the loan they needed to purchase their owner-occupied property, without the requirement to wait for the full tranche payments to be made.
$375,000 (Complete construction of owner-occupied property)
The Challenge
A 62-year-old husband and 63-year-old wife were looking to secure financing to...
Read More
9. Overcoming Health and Income Complexities to Secure Financing for Completing Property Construction
Loan Amount
$375,000 (Complete construction of owner-occupied property)
The Challenge
A 62-year-old husband and 63-year-old wife were looking to secure financing to complete the construction of their owner-occupied property. They had funded the construction up to the "lock-up" stage using their own cash resources. Unfortunately, they were advised incorrectly by their builder to begin construction before securing finance, not realising that obtaining a loan for a partially completed property would be difficult.
Income Verification and Servicing: Initially, the couple's allowable income did not appear sufficient to meet the servicing requirements, falling short at just 0.82 times.
Husband’s Health Issues: The husband had suffered a stroke in 2014, leaving him paralysed, and had been receiving disablement payments. Understanding the nature of these payments, including what was taxable and non-taxable, was crucial in determining how they would impact income verification.
Wife’s Carer Payments: The wife, as the primary carer for her husband, received carer payments, which also needed to be understood and factored into the income assessment.
Centrelink Pensions: Both the husband and wife received two forms of Centrelink pensions, which required accurate assessment for the loan application.
Partially Completed Property: The couple had already spent their own resources to fund construction up to the lock-up stage. Securing additional funds for a partially built home posed a further complication.
How VMG Helped
Income Understanding: We carefully reviewed the husband’s disablement payments to determine what portions were taxable and non-taxable. We also considered the wife’s carer payments and both Centrelink pensions.
Ongoing Evidence: With sufficient evidence provided of the couple’s income, we confirmed the ongoing nature of these payments, ensuring the loan’s serviceability.
Low LVR: The LVR on completion was less than 30%, a positive factor that helped mitigate the risks associated with the partially completed property.
Future Financial Strength: We also took into account that the couple’s pensions were about to increase, as their cash reserves had reduced due to the ongoing construction costs. Additionally, they had approximately $430,000 in superannuation, which could be used to extinguish the debt in the future.
Continuity of Construction: Since the couple was working with the same builder who had already completed part of the construction, continuity in the project was ensured, further supporting the loan application.
$750,000 (Refinance of owner-occupied property and payment of ATO debt)
The Challenge
A 61-year-old male applicant, employed as PAYG, and his 55-year-old wife...
Read More
10. Refinancing Solution for a Couple Facing Health and Tax Debt Challenges
Loan Amount
$750,000 (Refinance of owner-occupied property and payment of ATO debt)
The Challenge
A 61-year-old male applicant, employed as PAYG, and his 55-year-old wife, a cancer survivor and self-employed, sought refinancing to consolidate their existing mortgage and pay off a significant ATO debt.
Income Verification for Self-Employed Wife: The wife had been self-employed, but due to her health issues and the time needed for recuperation, her financials for the past two years had not been completed, making it difficult to verify her income.
Increasing ATO Debt: The couple was dealing with a growing ATO debt, which was adding further financial strain.
How VMG Helped
Alt-Doc Product: We used an Alt-Doc product, which allowed us to proceed without the need for traditional financial statements.
Income Declaration and BAS: We obtained a customer declaration from the wife, supported by two BAS statements, which were then annualised to generate an annual income figure.
Common-Sense Approach to Expenses: We applied fair and reasonable expenses and came up with a figure that was realistic and sustainable for servicing the loan.
Refinancing and Debt Resolution: This approach allowed us to refinance the property and assist the couple in paying off the ATO debt, improving their financial position.
$730,000 (Refinance from a private lender for owner-occupied property)
The Challenge
A couple sought to refinance their loan after facing significant financial challenges...
Read More
11. Refinancing After Financial Hardship: Overcoming Unemployment and Legal Fee Challenges
Loan Amount
$730,000 (Refinance from a private lender for owner-occupied property)
The Challenge
A couple sought to refinance their loan after facing significant financial challenges, including unemployment, loan arrears, and rising legal fees. The loan balance increased from $675,000 to $730,000 due to continued defaults, despite uncertainty around the husband's new employment during his probation period.
Unemployment and Loan Arrears: The male applicant (MA) lost his job during COVID-19, leading to loan arrears and default. Legal fees further increased the loan balance from $675,000 to $730,000.
Employment Uncertainty: Although the MA had secured full-time employment, he was still in his probation period, creating uncertainty about his ability to service the loan long-term.
How VMG Helped
Employment Confirmation: Despite the probation period, VMG accepted a copy of the MA’s employment contract and a single payslip showing his salary had been credited to his bank account.
Refinancing Away from Private Lender: With the understanding that the couple had been through a challenging period but were now back on track financially, VMG approved the loan and helped refinance them away from the private lender.
Clear Loan Terms: Refinancing the loan allowed them to exit the private lending situation, which had been accruing fees and causing significant financial strain. The couple was able to get back on track with a more manageable loan.
$880,000 (Refinance of owner-occupied property and debt consolidation, including ATO debt)
The Challenge
A husband (MA) and wife sought assistance with refinancing their home loan and...
Read More
12. Refinancing and Debt Consolidation After Bankruptcy: Helping a Couple Rebuild Financial Stability
Loan Amount
$880,000 (Refinance of owner-occupied property and debt consolidation, including ATO debt)
The Challenge
A husband (MA) and wife sought assistance with refinancing their home loan and consolidating significant debt, including home loan arrears and outstanding ATO debts.
Previous Bankruptcy:The MA had been discharged from bankruptcy but still faced substantial ATO debts, which continued to accumulate post-discharge, creating a challenging financial position.
Home Loan Arrears:The couple was in arrears on their home loan, adding another layer of financial strain.
Lack of Financial Knowledge:The MA was not financially savvy and had relied on advice from his previous accountant, who had recommended bankruptcy. The couple needed to navigate these challenges without fully understanding the financial implications.
New ATO Debt:After bankruptcy, further ATO debts accumulated, compounding the couple’s financial difficulties.
How VMG Helped
Refinance and Debt Consolidation: VMG offered to refinance the couple’s home loan and consolidate all debts, including the ATO debt and home loan arrears, into one manageable loan of $880,000. This allowed the applicants to "draw a line in the sand" and reset their financial situation.
Engagement of New Accountant: The couple had already engaged a new accountant who had developed a business plan for their medical business. VMG took comfort in this new partnership, as it demonstrated the couple’s commitment to turning around their financial situation.
Serviceability Confirmation: The medical business was profitable, and the new business plan outlined a clear path for the future. VMG was able to assess the serviceability of the loan, and we were confident in the applicant’s ability to meet their new repayment obligations.
VMG’s Life Event Focus: VMG is known for supporting applicants who have experienced difficult life events, and this case exemplified that commitment. We understood the hardship the couple had endured and provided a way forward that gave them a chance to rebuild their financial future.
A client burdened by seven separate loans and a low credit score of 25...
Read More
1. Debt Consolidation for a Client with a Low Credit Score
Loan Amount
$508,000 (Debt consolidation of 7 loans)
The Challenge
A client burdened by seven separate loans and a low credit score of 25, sought debt consolidation through a broker. Despite all loans being current, multiple lenders declined assistance due to the client's credit profile.
The client faced overwhelming financial stress, with rejections from four non-conforming lenders citing excessive debt load and failure to meet servicing requirements, leaving them without viable options.
How VMG Helped
VMG assessed the case with a non-risk-scoring approach and issued an indicative approval the same day. This allowed for the consolidation of the client's debt, reducing their monthly payment by $525 and providing a more manageable financial structure.
$750,000 (Assist with the purchase of an owner-occupied property)
The Challenge
An applicant transitioned from PAYG employment to self-employment within...
Read More
2. Supporting Loan Approval for a Self-Employed Applicant with Limited Business History
Loan Amount
$750,000 (Assist with the purchase of an owner-occupied property)
The Challenge
An applicant transitioned from PAYG employment to self-employment within the same industry. With an ABN registered for only 8 months, the applicant sought financial assistance for purchasing an owner-occupied property.
To support their application, they provided us with the following documents:
3 x Business Activity Statements (BAS)
Management accounts for the business
3 months of banking statements
How VMG Helped
VMG adopted a flexible, comprehensive approach by carefully reconciling the provided financial documents. We assessed the applicant’s business performance using the BAS, management accounts, and banking statements. After evaluating the financials, we were able to demonstrate the applicant’s ability to service the loan. VMG approved the loan, enabling the client to purchase their desired owner-occupied property despite the challenges presented by their brief self-employment history.
$1,600,000 (Refinance of investment property, refinance of land loan, and construction of a retirement home on the land being refinanced)
The Challenge
A couple aimed to refinance their investment property and land loan while obtaining...
Read More
3. Overcoming Income and Rental Income Challenges for Refinancing and Construction Funding
Loan Amount
$1,600,000 (Refinance of investment property, refinance of land loan, and construction of a retirement home on the land being refinanced)
The Challenge
A couple aimed to refinance their investment property and land loan while obtaining funds to construct a retirement home on the refinanced land. The wife, however, had sustained a shoulder injury and was on work cover, receiving a reduced income.
Income Uncertainty: Due to her injury, the wife was receiving 75% of her salary ($63,750 instead of $85,000), with no definite return-to-work date.
Inadequate Servicing: Traditional servicing methods couldn't demonstrate sufficient income to meet loan repayment obligations, as both the wife's reduced salary and the rental income from the investment property were lower than expected.
Investment Property Rental: The investment property in Metro Melbourne was rented to their daughter for $400 per week, significantly below the market rate of $650 per week, as confirmed by a rental appraisal.
How VMG Helped
Wife's Salary:VMG accepted the full salary of $85,000 for the wife, even though she was receiving a reduced income due to her injury.
Rental Income: Rather than applying the typical 80% of market rental for the investment property, VMG allowed 90% of the market rental value ($650 per week) to be used in the servicing calculation.
Superannuation: The husband’s super policy worth $1.5 million was considered as an additional asset, providing further financial reassurance.
sought to consolidate eight separate loans after experiencing financial strain...
Read More
4. Debt Consolidation for a Tradesperson Overcoming Financial Strain After Separation
Loan Amount
$552,000 (Debt consolidation of 8 loans)
The Challenge
sought to consolidate eight separate loans after experiencing financial strain following a separation from his partner.
Debt Burden: After the breakup, the applicant became solely responsible for repaying eight individual loans.
Payment Struggles: While he initially managed the repayments, rising interest rates made it increasingly difficult, resulting in late or missed payments.
How VMG Helped
VMG took a compassionate and comprehensive approach to understand the applicant’s circumstances. We acknowledged the applicant’s efforts to manage his debts and improve his financial position. By consolidating all 8 loans into one, we were able to significantly reduce his monthly repayments by $1,290, putting him in a better financial position.
A part-time cleaner and Uber driver from NSW sought pre-approval to purchase...
Read More
5. Overcoming Income Verification Challenges for a Dual-Part-Time Worker Seeking Investment Property Purchase
Loan Amount
$600,000 (Purchase of investment property)
The Challenge
A part-time cleaner and Uber driver from NSW sought pre-approval to purchase an investment property, relying on dual part-time income streams.
Income Verification Challenges: The applicant's multiple part-time jobs made it difficult to provide standard proof of income.
Cleaning Job: While two recent payslips were provided, they were insufficient to fully assess income stability.
Uber Earnings: The applicant was unable to provide official Uber statements, leaving this income unverified.
How VMG Helped
VMG calculated an annualised income from the cleaning job based on the two payslips provided, considering 48 weeks of work to account for fluctuations and annual leave.
Although no Uber statements were available, VMG extrapolated data from 7 months of personal bank statements showing salary credits from Uber earnings. We calculated an annualised figure from these deposits to verify the income.
The proposed rental income, based on a rental appraisal letter, was used and shaded at 80%. Additionally, we incorporated the negative gearing addback into the application to further support the applicant’s financial position.
A family trust, which owned multiple trading businesses, sought financing...
Read More
6. Simplifying Loan Approval for a Family Trust Purchasing a Wholesaling Business Amid Complex Financial Structure
Loan Amount
$605,000 (Purchase of a business)
The Challenge
A family trust, which owned multiple trading businesses, sought financing to acquire a wholesaling business from retiring vendors.
To support their application, they provided us with the following documents:
Complex Financial Structure: The applicants’ group structure involved multiple entities with both personal and business debts, making the financial landscape intricate.
Debt Servicing: While the applicants were successfully managing debt across their existing businesses, assessing their overall financial position was challenging due to the interrelated commitments among various entities.
How VMG Helped
VMG adopted a focused and pragmatic approach to resolve the situation:
VMG assessed the new loan amount solely based on the vendor's financial statements, isolating this purchase from the applicants' other business operations and financial commitments.
We also added back $100,000 worth of dividends paid by the vendors that were previously considered part of their wages, enhancing the financial picture.
We were confident that the existing business and personal debts were being serviced by the respective entities, and as such, did not need to factor in those obligations when assessing the new loan of $605,000.
By isolating the new loan request and focusing on the vendor's financials, VMG was able to approve the purchase of the business, even amidst the complex financial structure of the family trust.
Initially $1,500,000, offered $1,700,000 (Purchase of residential investment property)
The Challenge
A 61-year-old male applicant, based in regional NSW, is the Group Principal for 12...
Read More
7. Overcoming Financial Complexity to Secure Financing for a Residential Investment Property Purchase
Loan Amount
Initially $1,500,000, offered $1,700,000 (Purchase of residential investment property)
The Challenge
A 61-year-old male applicant, based in regional NSW, is the Group Principal for 12 corporate entities. He works as a consultant, assisting distressed businesses with voluntary administrations, insolvency trading, and bank restructures. The applicant sought financing to purchase a residential investment property, requesting a loan of $1.5 million.
The applicant’s complex group structure presented challenges, with most of the businesses facing financial losses, leaving only one entity reporting a net profit of $180,000.
A significant portion of the corporate entities had net losses up to June 2023, complicating the demonstration of sufficient income to support the loan.
Servicing Difficulty: Despite the business challenges, the applicant needed to prove enough servicing capacity to meet the loan requirements.
Additional Personal Commitments: The applicant also had personal mortgage obligations, further complicating the servicing assessment.
How VMG Helped
Addbacks and Net Profit:We used the net profit of $180,000 from the one profitable entity, along with various addbacks from the other entities totalling $540,000, to enhance the applicant's income.
Rental Income: VMG included rental income from the applicant’s 5 existing investment properties and the future rental income from the new property, shading the rental income at 85%.
Negative Gearing Addback:The negative gearing addback was also factored into the calculation, strengthening the income position.
Exclusion of Corporate Debt: Although the applicant had other business-related debts, we excluded these from the servicing calculation as they were not the responsibility of the applicant personally.
Loan Terms:We offered 3 years of interest-only repayments, followed by a principal and interest repayment schedule over the remaining 27 years, for a total loan term of 30 years.
By utilising these methods, VMG was able to approve a loan of $1.7 million, exceeding the applicant’s initial request and providing him with a more favourable financial position than expected.
$1,800,000 (Purchase of owner-occupied property following the sale of business)
The Challenge
The applicant, along with their business partners, established a niche...
Read More
8. Using Future Business Sale Proceeds and PAYG Income to Secure Financing for Property Purchase
Loan Amount
$1,800,000 (Purchase of owner-occupied property following the sale of business)
The Challenge
The applicant, along with their business partners, established a niche alcoholic drinks business, which was sold to a major bottle shop entity in 2023. The sale was structured in three tranches over a five-year period, with the first payment received in October 2023. In addition to the sale proceeds, the applicant was retained as a PAYG employee by the purchasing entity, earning $150,000 annually.
Future Income Stream:The business sale was structured to pay the proceeds over five years, with only the first payment received in October 2023.
Dependence on Tranche Payments: While the applicant had a stable PAYG income, the future income from the business sale was critical to their ability to service the loan, but they had not yet received the full amount.
How VMG Helped
Inclusion of PAYG Income: We included the applicant’s current PAYG salary of $150,000 per annum in the servicing calculation, ensuring we captured the immediate income available to them.
Future Income Stream: We recognised the future income from the business sale tranches as part of the applicant's financial picture. With confirmation from the Business Sale Contract and an accountant’s letter verifying the details of the transaction, we were able to include the future tranche payments in the servicing calculations.
Comfort and Certainty: By considering both the PAYG income and future business sale proceeds, VMG was able to provide the applicant with the loan they needed to purchase their owner-occupied property, without the requirement to wait for the full tranche payments to be made.
$375,000 (Complete construction of owner-occupied property)
The Challenge
A 62-year-old husband and 63-year-old wife were looking to secure financing to...
Read More
9. Overcoming Health and Income Complexities to Secure Financing for Completing Property Construction
Loan Amount
$375,000 (Complete construction of owner-occupied property)
The Challenge
A 62-year-old husband and 63-year-old wife were looking to secure financing to complete the construction of their owner-occupied property. They had funded the construction up to the "lock-up" stage using their own cash resources. Unfortunately, they were advised incorrectly by their builder to begin construction before securing finance, not realising that obtaining a loan for a partially completed property would be difficult.
Income Verification and Servicing: Initially, the couple's allowable income did not appear sufficient to meet the servicing requirements, falling short at just 0.82 times.
Husband’s Health Issues: The husband had suffered a stroke in 2014, leaving him paralysed, and had been receiving disablement payments. Understanding the nature of these payments, including what was taxable and non-taxable, was crucial in determining how they would impact income verification.
Wife’s Carer Payments: The wife, as the primary carer for her husband, received carer payments, which also needed to be understood and factored into the income assessment.
Centrelink Pensions: Both the husband and wife received two forms of Centrelink pensions, which required accurate assessment for the loan application.
Partially Completed Property: The couple had already spent their own resources to fund construction up to the lock-up stage. Securing additional funds for a partially built home posed a further complication.
How VMG Helped
Income Understanding: We carefully reviewed the husband’s disablement payments to determine what portions were taxable and non-taxable. We also considered the wife’s carer payments and both Centrelink pensions.
Ongoing Evidence: With sufficient evidence provided of the couple’s income, we confirmed the ongoing nature of these payments, ensuring the loan’s serviceability.
Low LVR: The LVR on completion was less than 30%, a positive factor that helped mitigate the risks associated with the partially completed property.
Future Financial Strength: We also took into account that the couple’s pensions were about to increase, as their cash reserves had reduced due to the ongoing construction costs. Additionally, they had approximately $430,000 in superannuation, which could be used to extinguish the debt in the future.
Continuity of Construction: Since the couple was working with the same builder who had already completed part of the construction, continuity in the project was ensured, further supporting the loan application.
$750,000 (Refinance of owner-occupied property and payment of ATO debt)
The Challenge
A 61-year-old male applicant, employed as PAYG, and his 55-year-old wife...
Read More
10. Refinancing Solution for a Couple Facing Health and Tax Debt Challenges
Loan Amount
$750,000 (Refinance of owner-occupied property and payment of ATO debt)
The Challenge
A 61-year-old male applicant, employed as PAYG, and his 55-year-old wife, a cancer survivor and self-employed, sought refinancing to consolidate their existing mortgage and pay off a significant ATO debt.
Income Verification for Self-Employed Wife: The wife had been self-employed, but due to her health issues and the time needed for recuperation, her financials for the past two years had not been completed, making it difficult to verify her income.
Increasing ATO Debt: The couple was dealing with a growing ATO debt, which was adding further financial strain.
How VMG Helped
Alt-Doc Product: We used an Alt-Doc product, which allowed us to proceed without the need for traditional financial statements.
Income Declaration and BAS: We obtained a customer declaration from the wife, supported by two BAS statements, which were then annualised to generate an annual income figure.
Common-Sense Approach to Expenses: We applied fair and reasonable expenses and came up with a figure that was realistic and sustainable for servicing the loan.
Refinancing and Debt Resolution: This approach allowed us to refinance the property and assist the couple in paying off the ATO debt, improving their financial position.
$730,000 (Refinance from a private lender for owner-occupied property)
The Challenge
A couple sought to refinance their loan after facing significant financial challenges...
Read More
11. Refinancing After Financial Hardship: Overcoming Unemployment and Legal Fee Challenges
Loan Amount
$730,000 (Refinance from a private lender for owner-occupied property)
The Challenge
A couple sought to refinance their loan after facing significant financial challenges, including unemployment, loan arrears, and rising legal fees. The loan balance increased from $675,000 to $730,000 due to continued defaults, despite uncertainty around the husband's new employment during his probation period.
Unemployment and Loan Arrears: The male applicant (MA) lost his job during COVID-19, leading to loan arrears and default. Legal fees further increased the loan balance from $675,000 to $730,000.
Employment Uncertainty: Although the MA had secured full-time employment, he was still in his probation period, creating uncertainty about his ability to service the loan long-term.
How VMG Helped
Employment Confirmation: Despite the probation period, VMG accepted a copy of the MA’s employment contract and a single payslip showing his salary had been credited to his bank account.
Refinancing Away from Private Lender: With the understanding that the couple had been through a challenging period but were now back on track financially, VMG approved the loan and helped refinance them away from the private lender.
Clear Loan Terms: Refinancing the loan allowed them to exit the private lending situation, which had been accruing fees and causing significant financial strain. The couple was able to get back on track with a more manageable loan.
$880,000 (Refinance of owner-occupied property and debt consolidation, including ATO debt)
The Challenge
A husband (MA) and wife sought assistance with refinancing their home loan and...
Read More
12. Refinancing and Debt Consolidation After Bankruptcy: Helping a Couple Rebuild Financial Stability
Loan Amount
$880,000 (Refinance of owner-occupied property and debt consolidation, including ATO debt)
The Challenge
A husband (MA) and wife sought assistance with refinancing their home loan and consolidating significant debt, including home loan arrears and outstanding ATO debts.
Previous Bankruptcy:The MA had been discharged from bankruptcy but still faced substantial ATO debts, which continued to accumulate post-discharge, creating a challenging financial position.
Home Loan Arrears:The couple was in arrears on their home loan, adding another layer of financial strain.
Lack of Financial Knowledge:The MA was not financially savvy and had relied on advice from his previous accountant, who had recommended bankruptcy. The couple needed to navigate these challenges without fully understanding the financial implications.
New ATO Debt:After bankruptcy, further ATO debts accumulated, compounding the couple’s financial difficulties.
How VMG Helped
Refinance and Debt Consolidation: VMG offered to refinance the couple’s home loan and consolidate all debts, including the ATO debt and home loan arrears, into one manageable loan of $880,000. This allowed the applicants to "draw a line in the sand" and reset their financial situation.
Engagement of New Accountant: The couple had already engaged a new accountant who had developed a business plan for their medical business. VMG took comfort in this new partnership, as it demonstrated the couple’s commitment to turning around their financial situation.
Serviceability Confirmation: The medical business was profitable, and the new business plan outlined a clear path for the future. VMG was able to assess the serviceability of the loan, and we were confident in the applicant’s ability to meet their new repayment obligations.
VMG’s Life Event Focus: VMG is known for supporting applicants who have experienced difficult life events, and this case exemplified that commitment. We understood the hardship the couple had endured and provided a way forward that gave them a chance to rebuild their financial future.
