A Past That Was Still Costing Them
If you’ve ever felt like your financial past is still holding you back, no matter how far you’ve come, Mike and Olive’s story will feel all too familiar.
Years ago, they entered a Part IX Debt Agreement, a decision made during a tough period to regain control of their finances. Fast-forward to today, and they have come a long way. Mike, now an ICT consultant, was earning close to $200,000 annually, and Olive, a Clinical Nurse, was earning $70,000 annually.
- They were financially stable.
- They had equity in their home in Jindalee, WA.
- And they had big goals: renovate their home and prepare for future investment.
But one thing was still holding them back: their mortgage.
They were stuck with a non-bank lender charging 7.79% interest. Every month, they lost thousands of dollars, which could have gone toward savings, improvements, or their next property.
“We were doing everything right, but it felt like we were still being punished for the past.”
And because of their discharged debt agreement, most mainstream lenders wouldn’t even look at them.
The Real Struggle: A Costly Loan That Refused to Let Go
Mike and Olive needed more than a better rate. They needed a complete financial reset:
- Refinance their home loan to a mainstream bank
- Access equity to fund renovations
- Consolidate their car loan
- Prove their financial recovery was real
- Regain flexibility through features like offset and redraw
- Presented a clear, documented explanation of the discharged debt agreement
- Included both Mike’s and Olive’s full income, factoring in overtime
- Demonstrated their equity position and history of strong repayment behaviour
- Built a case around their goals and why cashing out equity now made strategic sense
- Loan Amount: $898,400
- Property Value: $1,160,000
- LVR: 77.45%
- Interest Rate Secured: 5.79% (Variable, Owner-Occupied)
- Loan Term: 30 years
- Features: Offset, redraw, extra repayments
- Interest rate cut from 7.79% to 5.79%
- $430,000+ saved over the life of the loan
- Equity released for home renovations
- Car loan consolidated into the mortgage
- Monthly repayments dramatically reduced
- Access to modern features like offset and redraw
- Positioned to invest in SMSF property in 2025
But every time they applied, they hit a wall. Lenders saw the past, not the progress. And with a complex loan structure, most brokers wouldn’t take the case on.
That’s when they found Manish Rana, a mortgage broker with a reputation for taking on difficult refinances and getting them over the line.
The Turning Point: Finding The Right Mortgage Broker
Manish understood the challenge: most lenders would decline a refinance with a discharged Part IX debt agreement and multiple objectives. But he also knew which lenders had the policy flexibility to assess the whole picture.
He recommended a mainstream bank known for competitive rates and more considered credit decisions.
To give the deal the best chance of success, Manish:
The Breakthrough: Moving to a Mainstream Bank
Thanks to Manish’s strategic presentation and lender knowledge, the mainstream lender approved the refinance, something multiple lenders had already rejected.
Loan Snapshot:
The Outcomes:
Their new home loan wasn’t just approved. It was a turning point. With a 5.79% rate and a clean structure, Mike and Olive could finally breathe, plan, and dream again.
Why the Shift to a Mainstream Lender Mattered
Non-bank lenders can be a lifeline when options are limited, but they often come with higher interest rates and fewer features. Mike and Olive were paying for that difference every single month.
They didn’t just secure a lower rate by moving to a mainstream lender. They freed up cashflow, unlocked flexibility, and removed the financial weight of their past.
This wasn’t just a refinance. It was a total transformation.
More Than a New Loan: A New Chapter
Today, Mike and Olive are actively renovating their home, something they’d postponed for years. Their financial commitments are simpler, their monthly savings are real, and with a new property investment plan through their SMSF, their wealth-building journey is back on track.
Their story proves that even with a complicated history, a smart refinance strategy can lead to life-changing outcomes.
Why This Story Matters
Thousands of Australians like Mike and Olive are earning well and managing responsibly, but they are stuck in expensive loans because of old credit issues.
The good news? There is a way forward.
With the right broker, the right strategy, and the right lender, you can move from rejection to results.
Need to Break Free from a High-Interest Mortgage?
Don’t keep paying more than you should. If you’ve got equity and income but feel blocked by past credit events or lender red tape, we can help.
Our brokers are passionate about helping clients like you, no matter your history, build a better future. Call us on 1300 889 743 or complete our free online assessment, and we’ll show you what’s possible.