Launch Finance recently assisted a client after their current lender wasn’t best serving their needs for their loan. The client was looking to purchase a new property to add to their portfolio and their current lender wanted them to put a substantial amount of cash into a term deposit and use the term deposit as additional security to secure the property.
The client didn’t want to input more cash into purchasing the new property, so we reviewed the client’s current portfolio to see if the client had any other options available to them. By taking the time to review each property closely, we worked out that the client could access further equity in one of their other properties, which since the original loan had settled, increased in value.
We approached the current lender to bring their attention to this usable equity, however the lender was not willing to review the clients’ position. Launch Finance introduced the client to a new lender who had no issue using the property as additional security to take out the new loan.
The clients secured the funding, which allowed them to keep their money from the term deposit and put this in an offset account, saving them interest on the loan and saved them from paying tax on the interest they would have earned in the term deposit.
This allowed the client to free up some cash as they had some of their costs covered by the new lender and they even received a slightly better interest rate, which will save the client thousands over the life of the loan.