There’s nothing more satisfying as a broker than being able to help your clients out of a tough situation. Recently, we helped a couple who were facing the possibility of losing their home. The couple’s combined income had suddenly fallen after one of them was made redundant. They struggled for a few months, but unfortunately fell behind in their payments to the bank. The couple were referred to Launch Finance and came to us hoping for a solution.
Unfortunately, once you fall behind in your loan repayments, it becomes increasingly difficult to refinance. Additionally, given the couple’s income situation, they simply could no longer afford the loan. The other option was to put their home on the market and use the proceeds of sale to pay down their loan, but that created another problem…where would they live? A frightening situation to be in when you are in your fifties.
After investigating many options, we suggested that perhaps one of their adult children might be in a position to purchase the house from them as a favourable purchase. Happily, their daughter and her husband were able to assist, but whist they could afford the loan, they had no deposit.
Launch Finance was able to assist by sourcing a lender who would allow a favourable purchase at a 90% lend. Our client’s home was worth $650,000 at market valuation, and they needed just under $540,000 plus fees to pay out their existing loans with the bank. To solve the problem of a deposit, the couple gifted the remaining equity in the home to their daughter and husband, which effectively became their deposit – this is what is known as a favourable purchase.
Our client’s daughter and husband have now been able to buy their first home and our clients are able to continue living in their home with them.
“My parents were about to lose their home when we decided to seek some advice from Launch Finance about how we could look at buying it from them. The team at Launch Finance were brilliant, providing options for my parents to provide equity to us by way of a favourable purchase, we were able to buy the home from them. They have effectively saved my parents from losing their home (as they will live with us) and we have also been able to purchase our first home. I will be highly recommending Launch Finance to all of my friends. Gary & Jess.”
We are so glad we were able to help achieve such an outstanding result for our clients. If you have clients in a similar situation, or who have any finance needs that require our special attention, contact Launch Finance today.