Case Study – Off-the-Plan Purchase

I was introduced to a FHB couple who had purchased an off-the-plan unit in Rose Bay Sydney back in late 2020, being peak COVID times.

  • Purchase price = $910k
  • Stamp duty & other purchasing costs = $27k (includes FHB discount)
  • Less 10% deposit paid = $91k
  • Remaining amount due = $846k

When they approached their bank to go to unconditional approval:

  • Valuation = $980k
  • Loan = $846k + $13k in LMI (87% LVR)
  • Interest rate = 6.39%

When they were referred to us:

  • We ordered 5 valuations – $950k, $980k, $1m, $1.05m and $1.1m
  • Using the $1.1m val
  • Loan = $880k without LMI (80% LVR)
  • Interest rate = 6.09%
  • Surplus cash = $34k ($880k – $846k)

So in summary – brokers have access to multiple lenders and can order free valuations at anytime and without cost. This meant the customer saved $13k in LMI, secured a lower rate of 0.30% and even had $34k cash left over to furnish the house of their dreams.

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