While there’s no replacement for experience, it can be enlightening to see how other brokers have gotten through difficult transactions. MPA asks brokers to describe a tough loan situation and what they did to get the deal over the line.
Rael Bricker, House + Home Loans
Loan scenario: The client had scaled back her work from full time to three days per week, and could not qualify for new borrowings. She had a few loans – some lower interest with a major bank and some with a second tier mortgage manager at 2% higher. She decided to sell one of her properties, which had loan with a major.
The challenge: I realised that if she did that she would lose out on the lower interest loan.
Getting it over the line: I helped her do a partial discharge of one of the two titles at the mortgage manager. She then substituted that title for the one held at the major - thus releasing the property to be sold as “unencumbered”. She then used the proceeds to pay down the higher interest mortgage manager loans whilst maintaining the lower interest loans.