SCENARIO: Buying in bulk - making the most of the home renovation boom
Trevor^ has been in the paint manufacturing business for many years. COVID-19 presented mixed fortunes for his business – whilst demand for his products increased due to the home renovation and construction boom, his business was heavily dependent on imports from China, and with supply limited, he couldn’t make the most of the opportunity.
As conditions improved during the December 2020 quarter, Trevor’s business was able to ramp up production and he wanted to make the most of discounts available on bulk imports. As such, he needed finance.
Trevor’s discussed his situation with his broker and worked out that he could use the equity in his home to help get a loan, and as Trevor wasn’t able to provide full financials at the time of refinancing, but able to provide an accountants declaration to verify his income (he could have used six months BAS or three months of business bank statements), Resimac’s Prime Alt Doc product, with the current offer of 2.99% p.a. up to 80% LVR (variable, OO, P&I, 3.03%* p.a. comparison) with no Risk Fee was a great option.
With payments spread over 30 years, plus the ability to make additional repayments that he could access in the future if needed, Trevor had a product that suited his business now and into the future.
*Variable rate loans up to 70% LVR (unless otherwise stated). The comparison rate is calculated on the basis of a loan of $150,000 over a term of 25 years. WARNING: This comparison rate applies only to the examples given. Different amounts and terms will result in different comparison rates. Terms and conditions, fees, charges and lending or credit criteria apply. ^Not his real name. This scenario is for information purposes only and does not comprise professional advice or product recommendation.