Case Study Allied Health 1: Ally (29, Speech Pathologist) and Jake (32, Psychologist) – First Home Buyers

Ally and Jake’s Goal: Ally and Jake are newlyweds who are hoping to purchase their first property together. They have found a two-bedroom apartment in Cronulla, NSW that they really like which is selling for $800,000.

Ally and Jake’s Situation: Ally and Jake are newlyweds who are currently living with Jake’s parents. Due to being able to live with family and good financial habits, they have saved $110,000 over the past few years. Ally and Jake have been reluctant to purchase the apartment they like due to concerns that they do not have a 20% deposit. However, due to the cost of housing increasing, they are worried that they are going to miss the opportunity to purchase apartments such as the one in Cronulla.

How we helped Ally and Jake:

• Our mortgage broker met with Ally and Jake and determined that $110,000 would be an adequate amount of funds to purchase the desired apartment in Cronulla, utilising a 90% LVR (loan to value ratio) investment home loan. We also advised that as both Ally and Jake were both allied health professionals earning more than $90,000 per year each, they may be eligible to have their LMI waived by the lender.
• The mortgage broker then successfully applied for Ally and Jake to be approved for a $720,000 home loan and was able to save them approximately $11,000 on LMI and potentially thousands more due to interest that would have been paid on the LMI amount over the life of the loan.
• Ally and Jake were able to move into their apartment in Cronulla and were very happy with the amount of money the broker had saved them.

If you would like us to help you like we did Ally and Jake, contact us on (02) 8089 0297 or via our Contact Us page.

Case Study Allied Health 2: Michelle (35, Occupational Therapist) – Refinance an Equity Release

Michelle’s Goal: Michelle is coming off a fixed rate home loan and is keen to refinance because she has been informed that she will be on a much higher rate when the fixed rate period concludes. Michelle also wants to access some of the equity in her home, so she can start her own private occupational therapy practice.

Michelle’s Situation: Michelle has been working as an occupational therapist in the public health sector for the last 10 years. She has recently been offered positions with various allied health providers in which she would be hired as a contractor earning between 65-70% of the fees that she bills for. This would lead to a significant increase in her income, but would also cause her to have to start a business. Michelle is keen to do this and also start her own private practice but estimates that she will require approximately $50,000 the start a private practice that can cater to children. Michelle is reluctant to do this because she would have to do invest most of her savings into starting her private practice and is also concerned about her mortgage repayments increasing once the fixed rate period of her current loan expires. Michelle owns a two-bedroom apartment in Ramsgate, NSW worth $750,000. Her current home loan is $400,000 and her fixed rate expires in one month.

How we helped Michelle:

• Our mortgage broker met with Michelle and advised her that it would be easier for her to be approved for a refinance if she were to organise this whilst earning a salary from employer as this would allow her to access “full-doc” home loans with lower rates. We advised that Michelle could also refinance to home loans for new businesses but warned her that these home loans would attract a higher rate and would not be appropriate for her.
• Our mortgage broker then successfully applied for Michelle to refinance with another lender to get a lower rate and for her to release $50,000 in equity that she could use to put towards starting her practice.
• Once the new loan settled, Michelle resigned from her role and was able to make more money running her private practice and as a contractor.

If you would like us to help you like we did Michelle, contact us on (02) 8089 0297 or via our Contact Us page.