| Details | Description |
|---|---|
| Customer | Customer A |
| Broker | Prabesh Thapa |
| Purpose | Purchase of an NDIS property (Land & Construction) |
| Loan Amount | $813,170 |
| Security | $900,000 |
| LVR | 90.35% |
| Interest Rate | Split 1: $720,000 (Investment Construction NDIS, Variable, Interest-Only, 10.32%) Split 2: $93,170 (Investment Construction NDIS, Variable, Interest-Only, 10.32%) |
| Income | $122,500 |
Background
Meet Customer A, a full-time sales engineer with an annual income of $122,500, who was seeking to invest with a 90% NDIS construction loan.
Despite being a hardworking engineer with a stable income and a good career, Customer A couldn’t secure a loan, since finding a lender willing to perform a valuation for an NDIS-compliant property was burdensome.
In addition, Customer A had already made a deposit based on a 90% LVR, only to have the lender reduce the LVR by 10 percentage points, to 80%, meaning he would have to double his deposit.
Multiple problems
Customer A applied to multiple lenders and faced continuous rejections. He had a plethora of complications that stopped him from securing a loan:
- Only a handful of lenders offer NDIS loans up to 90% LVR, as most have started capping them at 80%.
- As most lenders aren’t familiar with NDIS-specific construction projects, loan approval turned tricky.
- Finding a builder experienced in NDIS-compliant construction was difficult.
- Understanding the complicated Specialist Disability Accommodation (SDA) compliance turned out to be a key challenge.
Even though Customer A was in good economic standing, policies and other external factors made his loan approval difficult.
The Solution
After many setbacks, Customer A connected with Home Loan Experts, and our broker Prabesh Thapa stepped in to solve his difficulties.
As it was Prabesh’s first NDIS loan, he worked extensively through the valuation process, liaising with the valuer, developer, NDIS provider and Customer A.
Prabesh ensured full SDA compliance by guiding Customer A through the necessary approvals and building regulations. In addition, Prabesh provided Customer A with clear insights into the requirements, risks and costs associated with NDIS housing.
For instance, the loan approval process required Customer A to find an NDIS-compliant builder and Prabesh helped him figure out who could do the job.
Another key challenge Prabesh faced was convincing the valuer to complete the valuation without insisting on additional documents. These additional documents would have increased the costs for Customer A.
Prabesh’s resilience proved fruitful. He managed to:
- Save Customer A extra costs
- Expedite the loan approval process
Lenders were also concerned about the occupancy of the NDIS property. They were skeptical about Customer A’s estimate of NDIS income of around $120,000 annually. Had Prabesh not stepped in to provide a logical breakdown of this claim and address these concerns with supporting documents, the formal approval would have been delayed.
A policy change from the lender cut the maximum LVR for NDIS property to 80%, which served as a major hurdle for Prabesh but he managed to pull through. After many conversations with multiple lenders, Prabesh found a different lender, willing to approve an NDIS loan at 90% LVR with capitalised LMI, meaning Customer A didn’t have to pay the LMI upfront. Instead, it was rolled into his loan repayments.
This particular lender provided flexible credit policies for NDIS investment and construction. The lender was even willing to factor in the valuer’s projected rental income ($120,000) for loan assessment.
Despite this, Prabesh had to follow up persistently to negotiate. The loan was eventually settled. Customer A did not lose his deposit and avoided penalties.
This win was a feather in the cap for Prabesh, as it shows his determination and ability to plot a course for complex scenarios and deliver exceptional results.
Ready to Invest in an NDIS property?
NDIS loans at 90% LVR are difficult to secure, as most lenders look at them as a major risk. Fortunately, at Home Loan Experts, we have a knack for doing the difficult things right.
Similar to the way Prabesh helped Customer A secure an NDIS loan at 90% LVR, mortgage brokers at Home Loan Experts can help you get a loan for your real-estate investments.
Call us today at 1300 889 743“>1300 889 743 or complete our free online assessment form and let us help you.