Settled Scenarios
Complex income · Construction

WorkCover income, family rent and a build to finish

Three income sources an automated servicing calculator could not read, assessed line by line to complete a retirement home.

$1.6m

LOAN AMOUNT

3

Income Types

Owner Occ

Security

THE STORY

The file, in three parts

What the broker brought, how the credit analyst read it, and what settled

01 · The challenge

The applicants needed to complete construction of the home they planned to retire in, with the build partly finished. Their income came from three sources an automated servicing calculator could not read together: WorkCover payments, rent from a family member living in a property they owned, and other income streams that standard policy either shades heavily or excludes outright. Each income line alone was insufficient; the calculator could not combine them.

02 · How VMG assessed it

A credit analyst went through the income line by line: confirming the WorkCover payments and their continuity, verifying the family rent arrangement as genuine and ongoing, and assessing the full picture of what the household actually received each month. Human underwriting, with no automated servicing calculator in the way, meant the income was read as it existed rather than as a policy category.

03 · The outcome

A $1.6 million loan to complete the construction of their owner-occupied home. The build was finished, and the applicants kept the retirement plan the half-built house had put at risk.

THE TURNAROUND

Before and after

The same file, before the refinance and at settlement.

BEFORE VMG

Construction stalled part-way through.
Three income sources no calculator could combine.
WorkCover and family rent shaded or excluded by standard policy.

AFTER SETTLEMENT

$1.6 million settled to complete the build.
Every income line verified and counted.
Retirement home finished as planned.

💡THE VMG COMMON-SENSE ADVANTAGE

Income policy asks what category money falls into. A credit analyst asks whether it is real, regular and enough. On this file, it was.

HOW IT WAS ASSESSED

Human underwriting

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.

Have a similar file?

Test the scenario with VMG credit before you lodge. VMG lends only through accredited mortgage brokers.

Related

More settled scenarios

FUTURE INCOME STREAM
Owner occupied purchase supported by PAYG salary and the remaining tranches of a business sale being paid out over five years.

$1.8m

LOAN AMOUNT

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SECURITY

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SALE TRANCHES
LOW CREDIT SCORE
Seven loans consolidated for a borrower with a low credit score, all repayments current, after the file had been declined elsewhere.

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LOAN AMOUNT

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CONSOLIDATED

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MONTHLY REDUCTION
DEBT CONSOLIDATION
A tradesperson left solely responsible for eight loans after a separation, with repayments slipping as rates rose.

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LOAN AMOUNT

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CONSOLIDATED

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MONTHLY REDUCTION

QUESTIONS

Frequently asked questions

With some lenders, yes. Under VMG's human underwriting, WorkCover income is assessed on its evidence and continuity rather than excluded by an automated rule. It is considered as part of the full income position.
It can. A genuine, ongoing arrangement with evidence of payment can be included in serviceability under human underwriting, where an automated assessment would typically shade or exclude it.
Construction lending is available case by case. A scenario to complete a partly built home is exactly the kind of file to test with your BDM before lodging, so credit can confirm the approach and documents.

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.

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