Non-resident loan – Case Scenarios
Origination News 30 March 2015

In last week’s newsletter we announced the launch of our non-resident loan product and we are pleased to report initial enquiry has been very strong.

We thought we would take the opportunity in this week’s newsletter to provide you with a handful of Case Scenarios we received during the week to paint a clear picture of what can be achieved through this innovative product, for both residential and commercial property, or for Full or Lite-DocTM income verification methods.

Scenario 1: Full-Doc residential investment refinance at 80% LVR

Hong Kong resident applicant looking to refinance existing non-resident loan held with a major bank, secured by residential property in Sydney, NSW.

Applicant is employed at an Accounting firm in Hong Kong earning HK$911,000 per annum (we take 90% of this amount and convert to AUD for serviceability calculations), and is in receipt of AUD$52,000 p.a. in rental income from the Australian investment property (we include 100% of this figure for serviceability calculations). Existing loan conduct is clear.

Loan Approved at 80% LVR

Scenario 2: Lite-DocTM residential purchase at 80% LVR

UK resident investor looking to purchase investment property (P/P $500,000) in regional Victoria. Seeking loan amount of $400,000 to complete.

Applicant is a self-employed restaurateur earning £130,000 which was verified by applicant’s accountant. 90% of this stated income was used for serviceability calculations.

Loan approved at 80% LVR

Scenario 3: Commercial property purchase at 70% LVR “Lease Doc”

Chinese resident looking to purchase a light industrial warehouse (P/P $1,200,000) in Brisbane, QLD, requires borrowing of $840,000 to complete. Property had recently been leased for 5 years at $6,000 per month. Applicant was looking for a 3 year interest only loan term with rental proceeds being used to make repayments (interest cover ratio 1.2x).

No other income verification required.

Loan approved at 70% LVR

Scenario 4: Full-Doc purchase student accommodation unit at 65% LVR

Japanese resident looking to purchase a student accommodation unit in Carlton, Victoria, for their daughter to occupy whilst she attends nearby university.

Purchase price was $350,000, with applicants looking to borrow $227,500.

Applicant is an employee of a supermarket chain in Japan. 90% of income used for serviceability calculations.

Loan approved at 65% LVR

If you would like to learn more about this product, please call your local Senior Manager Client Partnerships today, or alternatively you can speak directly with our credit team on 13 80 10.

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La Trobe Financial is one of Australia's leading independent credit specialist Fund Managers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 130 staff and has managed over AUD$10 Billion covering over 100,000 investment grade assets since inception in 1952.

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