If you’re self-employed you’ve no doubt experienced the pain associated with applying for a loan of any kind. Over the years I’ve heard from so many clients who have been given every possible excuse from their bank as to why they don’t meet their ‘inflexible lending criteria’. If you’ve found yourself in this situation before, if you’ve experienced the frustration of being told ‘no’ or having an application rejected, you’re going to enjoy this story.
Dan and Laura’s story:
I recently received a phone call from clients Dan and Laura who were desperate for help re-financing their existing home loan. As a result of some challenges in their business 5 years ago Dan and Laura were advised by their previous broker that their only loan option was a loan via a non-conforming lender (i.e. a lender who offers home loans to borrowers who don't meet the standard lending criteria of their bank or major lender) at the costly interest rate of 6.30%. Having no other options at the time, they reluctantly signed on the dotted line.
Fast forward to 2019… Dan and Laura watched on as interest rates dropped to historical lows, rates as low as half of what they were paying on their loan. Not the type to sit on their hands, Dan and Laura made contact with their lender late last year in the hope of refinancing to a lower rate - you can probably guess the outcome…
Undeterred, they decided to contact a mainstream lender – one of the big banks – to see if they could help. After 5 weeks of reviewing their financials the bank responded with “when reviewing your application, we identified some business liabilities that may inhibit servicing in the future.” Hearing the words “We’re sorry, it’s just bank policy” was about as soothing as an ice-bath in winter.
At this point, most regular people would give up and accept their fate - not Dan and Laura. When they contacted Fortuity Lending for help, they advised they were keen to “have one last throw at the stumps” to quote Dan. Not one to shy away from a challenge I got to work investigating all the possible lending options offered by the wide variety of lenders we have access to, focusing on those lenders who are interested in helping people who are self-employed.
Early in 2020 I had the pleasure of advising Dan and Laura we had been able to re-finance their loan at an interest rate of 3.05%, less than half of their previous rate. Not only that, in the course of refinancing we were also able to negotiate the release of $20,000 as a one-off cash-out, money Dan and Laura intend to put towards a much-needed overseas holiday later in 2020.
If you’re self-employed and are fed up with ‘paying over’ on any of your loans, contact the team at Fortuity Lending today. We will go in to fight for you, secure the best possible deal on your behalf and help you to ensure more of your hard-earned money remains your hard-earned money.
Most of all, don’t rely on your bank to deliver you a sweet deal this Valentine’s Day.
* NB: Clients’ names have been changed for privacy purposes.