Vega Vega Mortgages case study: How we assist self-employed clients with first home loans
Vega Vega Mortgages case study: How we assist self-employed clients with first home loans
Vega Vega Mortgages case study: How we assist self-employed clients with first home loans
Vega Vega Mortgages case study: How we assist self-employed clients with first home loans
Case Study 1. Getting home loan approval despite recent business changes
Client Profile:
- A young family, first home buyers.
- Recently, they transitioned their business type within the same industry and used their savings to invest heavily in upgrading equipment.
- The challenge is that their previous net profit was significantly lower than the projected result and the current financial year hasn’t been completed yet to demonstrate any improvements, which raises concerns about meeting the lender’s affordability criteria.
Solution:
- The mortgage adviser, leveraging an accounting background, analysed the clients’ financial statements. They showcased the improvement from their past business activity to the new one, highlighting improvement in profitability in their mortgage application to mitigate concerns about income stability.
- Careful selection of lenders and in-depth knowledge of their policy requirements, coupled with strategic using of business expense add-backs, made easier for the clients to secure their loan approval.
Case Study 2. From wages to business owner and successfully securing a loan.
Client Profile:
- A couple, first home buyers with a 20% deposit.
- The client was working for wages as a Masseuse and then wanted to start her own business, plus a partner on PAYE..
Solution:
- Financial Projections. Mortgage adviser worked with the client to project earnings weekly taking into account appointment capacity, rest breaks, market demand, etc. These calculations provided a solid foundation for forecasting future revenues, with the calculations to back up the earnings, showing the client still had extra capacity and was not stretching her beyond her means.
- Strategic Planning. Based on the earnings projections, the adviser developed a game plan with target earnings over the next 7-month period with regular check-ins which proved the forecast was achievable.
- Securing Funding. After 7 months, armed with a well-documented business plan, detailed financial forecasts, and evidence of actual earnings, the client successfully secured lending to purchase their first home.