Khris Lloyd

25-year-old Khris Lloyd was left in the lurch when his beloved credit union did a backflip on their pre-approval for a run-down beach shack.

“I put in an offer of $275,000 on the property after I was told I could borrow $280,000,” says Khris. “But when they valued the property at $240,000, that was all they would lend me, saying I wouldn’t be able to afford to renovate it. This was despite the fact that I could easily afford the repayments on $275,000 and planned to renovate it myself.”

Khris then found Smartline’s Steve Long. Steve’s knowledge of different types of lenders helped Khris get back in the game.

Steve knew that small credit unions have to be more conservative and can’t take many risks. Big banks, on the other hand, have a much better appetite for risk and were therefore a better candidate for Khris.

The next hurdle was finding a bank that would accept Khris’ grandparents as guarantors. This would allow him to reach a 20% deposit and avoid paying LMI.

“The bank Steve suggested was perfect,” Khris says. “They were happy with the guarantors and they didn’t require a valuation. It wasn’t the lowest rate – although it wasn’t too bad – but they were the best option in my situation.”

Khris took out two loans – one on his own with a fixed rate, and one with his grandparents going as guarantor on a variable rate. The latter Khris will aim to pay down as quickly as possible so his grandparents can be released from the loan.

“After the mortgage repayments, I put a little bit of money aside each pay check. When I have enough, I’ll do the next stage of the renovation. It’s exactly what I wanted.”

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