Vacant Land Loan

 Another Tricky Scenario

This saved a customer $6,500 in risk fees by using their vacant land as additional security on their application.
Scenario
-Refinance & cash out for renovations.
Issues
-ABN less than 24 months in operation.
-Only 1 year tax returns.
-Low credit score.
Solution
-Client’s refinance and cash out was sitting at 80% LVR so a risk fee would have been incurred.
-They owned a vacant block of land that they are not looking to build on in the near future.
-Using the land as secondary security, kept the overall LVR at 70% and total loan under $750,000.
-They could use their 2022 financials in isolation.
-No Credit Scoring was needed.
The customer was approved in 3 days after lodging.
Matthew Stack - Mortgage Broker
0423 237 242












Location: Australia

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