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How a self-employed client effortlessly secured a $5 million bridging alt-doc loan to upsize into a dream home, avoiding income verification challenges and easing the transition between properties
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The scenario
After accumulating over a decade of experience in the IT industry, a self-employed IT professional established his own IT consultancy company two years ago. His entrepreneurial venture proved to be a resounding success, allowing him to pursue the purchase of a dream home valued at approximately $5 million. With his business thriving, he had already paid off his existing property valued at $2.5 million.
When approaching traditional lenders, the client faced two options for purchasing the new property. The first option was to cross-collateralise the existing and new properties, borrowing $5 million, but this required income verification based on the total loan amount, which would have been challenging for him. The second option was to sell his existing property first and then purchase the new one – a process that would have been a huge hassle for the business owner and his young family due to the uncertain timeline and the risk of missing out on his dream home.
Given his circumstances, the best solution was to secure bridging finance to purchase the new property while awaiting the sale of his current home. He turned to Brighten for a solution that would accommodate his requirements.
Understanding the urgency and specific requirements, Brighten provided a tailored solution through its Brighten Connect bridging loan product, featuring an Alt Doc Prime end debt option. This allowed the customer to verify income using alternative documentation.
Since income verification was only required for the $2.7 million end debt, Brighten accepted a letter from the customer’s accountant as sufficient proof of income, eliminating the need to prepare detailed financial statements. Brighten approved a $5 million loan at 70% LVR with a fast turnaround, ensuring the customer could complete the purchase of the new property without delay.
This solution gave the customer the flexibility to focus on his thriving business while comfortably transitioning into his dream home. The customer was very pleased with the smooth process and relieved to have up to 12 months to sell his existing property. Upon the successful sale, he could pay down the bridging loan. More importantly, after discharging the sold property, Brighten would automatically convert the loan to a standard Alt Doc Prime loan at a lower interest rate, easing his long-term financial obligations.
The takeaway
Brighten Connect is specifically designed to help customers transition smoothly between properties, alleviating the stress and worry often associated with buying and selling at the same time. With a maximum loan size of $5 million, Brighten Connect offers the flexibility and support your clients need – whether they’re looking to upsize, downsize, take advantage of the current market, or avoid the hassle of finding a rental.
A key feature of Brighten Connect is that it provides peak debt at settlement while only requiring income verification based on the end debt. Another advantage is that, during the bridging period, the interest budget is retained, and no repayments are required.
After the bridging period, the loan automatically converts to Brighten’s standard Full Doc Prime, Alt Doc Prime or Expat loan at a lower interest rate. For end debt income verification, Full Doc Prime accepts one-year financials and regular director wages, while Alt Doc Prime only requires one form of income documentation, such as an accountant’s letter.
The flexibility and understanding demonstrated by Brighten highlight the lender’s commitment to providing tailored financial solutions that meet the unique needs of its customers.
Brighten is an Australian owned and regulated non-bank lender. We are responsible for the origination, underwriting, servicing and funding of our mortgage portfolio. We have well-established warehouse-funding arrangements with multiple top-tier banks, two public RMBS programs and multiple wholesale credit funds to provide further funding diversification. Brighten’s comprehensive set of product offerings includes competitive home loans for prime and near prime borrowers and the self-employed, alternative-documentation loans and loans for ex-pats and non-residents.
Find out more
Client
Self-employed
(IT consultant)
PRODUCT
Brighten Connect
goal
Hassle-free solution
to upsizing
LVR
Peak debt: 70% LVR; end debt: 55% LVR
PROPERTY TYPE
Established home
LOAN AMOUNT
Peak debt: $5m; end debt: $2.7m
The facts
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Brighten Connect is specifically designed to help customers transition smoothly between properties, alleviating the stress and worry often associated with buying and selling at the same time
A key feature of Brighten Connect is that it provides peak debt at settlement while only requiring income verification based on the end debt
How a self-employed client effortlessly secured a $5 million bridging alt-doc loan to upsize into a dream home, avoiding income verification challenges and easing the transition between properties
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Copyright © 2024 KM Business Information Australia Pty Ltd
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Australian Broker Talk
Resources
TV
Sector Focus
Power Panel
Independent Feature
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Exclusive Leader Profile
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Big Deal
Premium Content
Technology
Reverse Mortgages
Investment Loans
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Specialty
Best In Mortgage
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Copyright © 2024 KM Business Information Australia Pty Ltd
RSS
Sitemap
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Firms
Advertising
Authors
E-newsletter
Contact Us
Contact Us
Australian Broker Talk
Events
White papers
Webinar
Australian Broker Talk
Resources
TV
Sector Focus
Power Panel
Independent Feature
Executive Team Profile
Exclusive Leader Profile
Business Update
Business Focus
Big Deal
Premium Content
Technology
Reverse Mortgages
Investment Loans
Specialist Lending
SME
Commercial
Specialty
Best In Mortgage
News
News
Copyright © 2024 KM Business Information Australia Pty Ltd
RSS
Sitemap
About us
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Privacy policy
Terms & conditions
People
Firms
The solution
Published 14 Oct 2024
IN Partnership with
After the bridging period, the loan automatically converts to Brighten’s standard Full Doc Prime, Alt Doc Prime or Expat loan at a lower interest rate. For end debt income verification, Full Doc Prime accepts one-year financials and regular director wages, while Alt Doc Prime only requires one form of income documentation, such as an accountant’s letter.
The flexibility and understanding demonstrated by Brighten highlight the lender’s commitment to providing tailored financial solutions that meet the unique needs of its customers.
Brighten Connect is specifically designed to help customers transition smoothly between properties, alleviating the stress and worry often associated with buying and selling at the same time. With a maximum loan size of $5 million, Brighten Connect offers the flexibility and support your clients need – whether they’re looking to upsize, downsize, take advantage of the current market, or avoid the hassle of finding a rental.
A key feature of Brighten Connect is that it provides peak debt at settlement while only requiring income verification based on the end debt. Another advantage is that, during the bridging period, the interest budget is retained, and no repayments are required.
The takeaway
This solution gave the customer the flexibility to focus on his thriving business while comfortably transitioning into his dream home. The customer was very pleased with the smooth process and relieved to have up to 12 months to sell his existing property. Upon the successful sale, he could pay down the bridging loan. More importantly, after discharging the sold property, Brighten would automatically convert the loan to a standard Alt Doc Prime loan at a lower interest rate, easing his long-term financial obligations.
After accumulating over a decade of experience in the IT industry, a self-employed IT professional established his own IT consultancy company two years ago. His entrepreneurial venture proved to be a resounding success, allowing him to pursue the purchase of a dream home valued at approximately $5 million. With his business thriving, he had already paid off his existing property valued at $2.5 million.
When approaching traditional lenders, the client faced two options for purchasing the new property. The first option was to cross-collateralise the existing and new properties, borrowing $5 million, but this required income verification based on the total loan amount, which would have been challenging for him. The second option was to sell his existing property first and then purchase the new one – a process that would have been a huge hassle for the business owner and his young family due to the uncertain timeline and the risk of missing out on his dream home.
Given his circumstances, the best solution was to secure bridging finance to purchase the new property while awaiting the sale of his current home. He turned to Brighten for a solution that would accommodate his requirements.
The scenario
Published 14 Oct 2024