THE STORY
What the broker brought, how the credit analyst read it, and what settled
01 · The challenge
The applicants needed to refinance their owner occupied property away from a private lender. The male applicant had lost his job during COVID-19, the loan fell into arrears and then into default, and legal and enforcement costs lifted the balance from $675,000 to $730,000. By the time the file reached VMG he had secured full time work again, but he was still inside his probation period, so the standard employment evidence was not yet available.
02 · How VMG assessed it
Human underwriting read the direction of travel rather than the worst month on the file. The employment contract was accepted alongside a single payslip showing the salary credited to the applicant’s account, which confirmed the income was real and flowing even though probation had not ended. The arrears and the growth in the balance were treated as consequences of one job loss inside a defined period, not as a pattern of conduct. Because the purpose of the loan was to exit private lending, the structure itself removed the cost pressure that had been compounding the problem.
03 · The outcome
VMG settled a $730,000 refinance of the owner occupied property, moving the applicants off private lending and onto a single loan with clear terms. The couple exited a situation that had been accruing costs against them and returned to a repayment they could manage.
THE TURNAROUND
The same file, before the refinance and at settlement.
BEFORE VMG
AFTER SETTLEMENT
💡THE VMG COMMON-SENSE ADVANTAGE
HOW IT WAS ASSESSED
Every file is read by a credit analyst, not scored by a system. There is no credit scoring, and no DTI or DSR ratio applied. The product and the terms depend on the individual file, so talk to your BDM about where a similar scenario fits.
Test the scenario with VMG credit before you lodge. VMG lends only through accredited mortgage brokers.
Related
QUESTIONS
All applications are subject to Victorian Mortgage Group’s standard credit assessment and lending criteria. Terms, conditions, costs and charges apply. This article is general information only and does not take into account your objectives, financial situation or needs.
Please allow our team 24-48 hours to review your documents and get in touch. For urgent assistance, call us at 8600 7900.
You can give us a call at 03 8600 7900 to clarify your questions.