In a softer property market, there may be an opportunity sitting in your existing book: clients who wanted to upgrade, but couldn’t make the numbers work.
Consider a young family looking to move from an apartment into a house. They can comfortably service the new loan, but selling their existing property won’t leave them with the traditional deposit needed to make the move.
Previously, the answer may have been to wait, build more equity and try again later.
With Connective Skip, eligible clients can purchase with as little as a 2% deposit, low fees, no LMI and competitive interest rates (6.39%). Instead of waiting for their equity position to improve, they may be able to use the deposit they have today - and make the move sooner.
As property prices soften in some markets, it’s worth revisiting clients who:
For these borrowers, the issue may not be borrowing capacity. It may simply be the gap between the equity they have and the deposit traditionally required for their next property.
Before assuming an upgrader still needs to wait, run the numbers again. The property they thought was out of reach last year may stack up differently today. Reach out to your Connective Lending Manager or Connective Skip BDM to find out more.
