Sheel Capital was engaged by two general practitioners for a residential loan to purchase their dream home. Both general practitioners had completed their qualification and had been practicing for a few years. They were in the market to purchase a property that they could call home for the next 10 years.
We arranged a discovery meeting in which we talked about their complete assets and liabilities position along with their work and how they get remunerated. Along with their current financial situation, an emphasis was made on their short and long term goals to ascertain how best we could assist them.
It was noted that one of the applicants had recently moved from a PAYG model to a sole trader model. In their sole trader model, they charged the clinic they worked for on the basis of how many patients they saw each day. This was assumed to be a concern with most lenders as the policies in most cases requested for a minimum of 1 full year of trading history.
The clients made us aware that the remuneration outcomes from working on a Sole Trader model were far greater than being on a PAYG model and flexibility was an added incentive.
Sheel Capital conducted an in-depth review of both the applicant’s income and organised a serviceability test to make them aware of their maximum borrowing capacity. An innovative method of calculating the income of the sole trader applicant was to calculate the revenue from the most recent quarter and subtract the expenses to ascertain an annual income which could be utilised for servicing.
A total of 9 banks were approached with the annualised servicing scenario and we were given a hard “No” and were requested to wait for a full year of income before the application could be submitted.
As one of the last options, a round table meeting was conducted with the health division of a major lender and their credit manager. They agreed to the submission of the application with an annualised income of the sole trader applicant
The lender agreed to fund the desired amount for the applicants to purchase their home in the competitive market. Not only did the lender grant the approval to the customer but they also provided the client with the highest Loan To Value Ratio (95% of the purchase price). This was due to the clients' affiliation with the healthcare industry.
The client was able to bid in the auction with confidence for their dream home and secured a sought after property in one of the most liveable suburbs in Melbourne.
We gained an advocate because of Sheel's persistence in securing the finance that suited our clients needs and their stage in life.
