• Applicants wished to purchase an owner occupier home in Auckland, purchase price $579,000.
• These applicants commenced their own business 18 months ago with first twelve months financials recording $95k NPBT. The more recent 6 months trading had produced NPBT of $27k. (it was these trading results that precluded them from arranging a high LVR facility with their main bank).
• The applicants had 10% cash deposit available and they owned motor vehicles valued at $37k.
• The broker had arranged a 1^st mortgage of $463k (80% LVR).
• The applicants required $58k to complete this purchase.
• MBG provided a $58k facility plus fees, over a 84 month term, at 14.95%pa, secured over their motor vehicles with an unregistered caveat in the property to be purchased.
• Brokerage, in addition to main bank, of $1,500 was mandated and added to this facility.

Example 2. (Property Acquisition)

• Applicant was a professional practitioner who had provided his guarantee to a family member.
• The family members facility fell into default and as a result the bank was looking to the applicant under his guarantee.
• This applicant wish to refinance existing facilities on his owner-occupier plus two residential rental properties however with a default lodged by his existing bank he was encountering difficulties given his LVR exceeded 80%.
• In conjunction with his broker a 70% LVR facility was provided by a main bank and the solution which M B G provided was a refinance of owner-occupier property plus a top up, plus 10% on his rental properties.

Example 3. (Property Acquisition)

• Applicants wishing to purchase their first home from a family member at a discounted price.
• Agreed purchase price, $240k, registered valuation $280k.
• Applicants were receiving modest incomes and had $0 deposit
• M B G facilitated a 1^st mortgage of 66% of registered valuation ($185k) and provided a subsequent facility of $55k plus fees, over a term of 84 months, at 15.95%pa, secured over their $11k motor vehicle and registered caveat of the property to being purchased.
• Brokerage of $2,000 was mandated and added to this facility.

Example 4. (Property Acquisition)

• A single applicant (separated) wished to purchase an owner occupier. Purchase price $234k.
• The applicant had no deposit but was provided a gift of $12k from family (5%). A deed of gift and non repayment was obtained.
• The applicant received a modest income ($38k) plus child maintenance and boarder income.
• The broker arranged a 1^st mortgage of $187k (80% LVR)
• M B G provided a facility of $35k plus fees, over a term of 84 months, at 15.95%pa, secured over the owner occupier property and a modest motor vehicle.
• Brokerage of $2,000 was mandated and added to this facility.

Example 5. (Relationship Property Settlement)

• Applicant wished to purchase the other parties share of the family home as part of the relationship property settlement, $344k
• In the process the applicant wished to consolidate additional $43k of other debts.
• During the separation process the parties had missed several loan payments and were in default with their existing (joint) provider.
• The now single applicant was earning $80k pa. plus some reliance on boarder income.
• Total facilities of $387k were required to complete settlement representing an overall LVR of 87%.
• M B G facilitated a 1^st mortgage of $294k, 48 months interest only, at 7.25%pa and a subsequent facility of $93k plus fees, over a term of 84 months, at 15.95%pa, secured over the property and a charge over the motor vehicle to which facilities were refinanced.
• Weighted average interest rate 9.34%pa.
• Brokerage of $3,500 was added to this facility.

Example 6. (Debt Consolidation)

• Applicants had combined consumer debt and credit card facilities of $37k, in addition to $400k 1^st mortgage.
• One applicant suffered a work related injury.
• Whilst receiving ACC these applicants missed consumer debt and credit card payments and were in default.
• Both applicants had resumed full time work generating combined income of $127k
• M B G provided a refinance of consumer debt and credit card facilities.
• Resultant LVR , including existing 1^st mortgage was 91%.
• Brokerage of $1,500 was mandated and added to this facility.

Example 7. (Debt Consolidation)

• Applicants own a vacant lifestyle block, $650k.
• Applicants have a first mortgage of $350k plus consumer debt of $45k, credit cards of $18k and a family loan of $20k.
• The applicants had impaired credit and rates for the property were outstanding.
• The broker approached M B G to consolidate consumer debt, credit cards, repay family loan, and pay rates, total $88k.
• Combined household income $150,000
• M B G provided a refinance of consumer debt, credit card facilities, family loan, and paid outstanding rates; facility was provided over a term of 84 months, at 15.95%pa, secured by caveat over the property and a charge over the motor vehicle to which facilities were refinanced.
• Brokerage of $1,500 was mandated and added to this facility.

Example 8. (Business Acquisition)

• One of the applicants had worked for the business for a period of 4 years and now wished to purchase it with his partner. Purchase price $90k.
• Applicants owned an owner occupier, which had exiting facilities that equated to 88% LVR, plus motor vehicles with market value of $25k.
• One of the applicants retired parents was prepared to assist with business acquisition but wished to limit their exposure to $50k.
• The solution which M B G facilitated was to obtain a 1^st mortgage facility of $50k for parents on interest only terms, thus limiting their liability, and providing a facility of $40k at 15.95%p.a. secured by the applicants existing property plus a charge over the business assets and motor vehicle.

Example 9. (Taxation Liability)

• Self employed applicants found themselves owing the IRD +$140k.
• Their accountant was able to negotiate a deal whereby the applicants were required to pay 50% of this liability immediately with the balance repayable over time.
• The applicants broker approached M B G for a solution.
• The applicants assets included 4 properties with combined LVR of 73%.
• Given the natures of these properties, rentals, and the requirement - pay outstanding taxes, their existing banker was not prepared to provide additional facilities.
• M B G provided a facility of $70k plus fees to facilitate this arrangement with the IRD and to enable the applicants to continue to trade.
• Brokerage of $1,500 was mandated and added to this facility.

If you have a proposal that you would like to discuss, please do not hesitate to contact M B G.