The chief, who had kept his post throughout the pandemic, was “shocked” when his bank toppled him. Here’s what he did next.
When Hayden Lee made an offer on a property and was subsequently turned down by the bank for a loan, he was “crushed”.
The 30-year-old believed he would have no problems after preliminary talks with the bank.
He had found a two-bedroom apartment in Wollongong that sold for $ 540,000 that he had fallen in love with and had managed to save the deposit a month earlier than the deadline given to him by the bank.
But his $ 30,000 in savings, which would cover 5% of the deposit, was not enough. In fact, he found out that he needed a 10 percent deposit due to the bank’s mortgage regulations.
âI was a long time customer with them and they knew I had paid off a previous (personal) loan,â he told news.com.au.
âThey also knew how much I was paid, especially since I was working throughout the Covid pandemic. In my eyes, I was not a high risk investment, so I was a little surprised and shocked by it all. I was quite upset because after all, I was going to see the place again.
The chef quickly realized that he needed expert help and that relying on the bank might not be the best decision for him.
In a strange twist of fate, the people he wanted to buy the apartment from put him in touch with mortgage broker Joseph Daud, the founder of It’s Simple Finance.
Mr Daud took Hayden’s frantic phone call and explained his options to him, including signing up for the first home lenders deposit program.
This ensures that first-time home buyers with low to middle income can buy their first home with just a 5% down payment.
âWithout the program, the downsides of a low deposit home loan can be financially crippling,â he explained.
âThese disadvantages include having to pay mortgage insurance from the lender, a low deposit premium, or having to rely on a guarantor. This program offers up to $ 10,000 in home loans per fiscal year to eligible individuals. “
It was a win for Hayden as he said he got a better interest rate and it gave him the opportunity to own a home without a huge deposit.
He added that having a mortgage broker to guide him on everything from legal terms to schemes was a big help.
Most people are unaware of the options available to them, Daud noted, and can often find the process “intimidating”.
“The hardest part is people don’t know what programs are applicable to them and they don’t know they can buy with just a 5% down payment and with a first homeowner grant in NSW then they can get 10,000. extra $ for a house under $ 600,000, âhe said.
“The people of NSW can buy a house with a deposit as low as $ 28,000, but they think they must save $ 80,000 or more than $ 100,000.”
Mr Daud, who owns four properties as an investment, including one in Tasmania, said a simple Google search would help people figure out what could help them access property and what to do .
He said it’s also important to find the right information depending on whether you are planning to buy a home for an investment or to live in it.
“It’s always a good idea to get a second opinionâ¦ Hayden was just going to go to his bank and then he found out he wasn’t going to be approved and needed help with this. purchase, “he added.
“Just by having a second opinion or a second person who gave them a plan B and when it comes to buying a property it’s good to have a plan B and that’s not the kind of thing where you burn the boats and go with one person. “