Case Study: 11 Investment Properties

Client Profile
• Total property holdings of over $3.9m
• 11 investment properties and 1 primary dwelling
• Joint ownership in some of the properties
• Cross collateralised mortgages
• Successful doctor with multiple and variable income streams including business ownership

Client Requirement
• Client wanted more capital for further investments
• Existing bank would not lend more due to high debt servicing level
• Alternate mortgage broker unable to handle the complexity of client requirement

Bower Finance Solution
• Re-valued existing properties to unlock accumulated equity
• Removed cross collateralisation to reduce risk to client
• Emphasised high asset value - low “loan to valuation ratio”
• Presented client as property development/management business
• Established historical reliability of variable income streams (including financial strength of business)

Result
• Secured an initial $915,000 in additional capital through a more suitable bank.
• Positioned the client’s requirements for even further lending under new structure

Case Study: $5.7m Property Development

Client Profile
• Multiple parties including a building company, the building company partners, and their spouses
• Existing cross collateralised mortgages over their two primary residences and the proposed development site
• The client had demolished a home on the development site and incurred unexpected delays at council resulting in significant holding costs

Client Requirement
• Increased holding costs meant the client was unable to complete construction of the development without increased finance
• The client’s existing bank would not lend any more due to their taking a low “loan to valuation ratio” (LVR) across all three mortgaged properties and a low valuation of the proposed development
• Alternate mortgage brokers were approached but could not handle the complexity of deal

Bower Finance Solution
• Bower approached another lender used to dealing with significant property development projects
• Each property was presented separately to secure a higher LVR on their primary residences
• The development site was re-valued based on expected returns from the completed site

Result
• Secured sufficient capital to complete the project and left significant equity available on redraw for future projects