The Birdie Advantage: Expert Intervention in a 5% Deposit Scenario
Securing finance with a minimal deposit is a significant hurdle for first home buyers, often complicated by bank valuation requirements. This case study illustrates how Birdie Financial stepped in to save a crucial deal when a client’s dream of buying a new townhouse was almost derailed by a low valuation.
The Initial Challenge: The Valuation Gap
Our client, a first home buyer, had partnered with Birdie Financial to secure a high-leverage construction loan for a new townhouse, successfully achieving approval with a crucial 5% deposit. The approval was conditional on a registered valuation supporting the purchase price.
Unfortunately, when the bank’s valuation was returned, it came in under the agreed purchase price. This created an immediate problem: the bank required a higher deposit to cover the gap, a sum the client did not have readily available. The deal was at risk of collapse unless a quick and creative solution could be found.
The Birdie Solution: Negotiating Power and Partnership
Birdie Financial’s role quickly shifted from broker to strategic advisor. Instead of scrambling to find extra funds, we leveraged our understanding of the market and the project’s financials. We immediately helped the client renegotiate the purchase price with the property developer, armed with the evidence from the bank’s valuation.
This proactive intervention, backed by our professional communication and market insight, ensured the developer understood the necessity of adjusting the price to keep the deal alive.
The Outstanding Result
The client successfully renegotiated, achieving an outstanding $30,000 saving on the purchase price.
The bank was satisfied with the reduced purchase price, which brought the loan-to-value ratio (LVR) back within acceptable limits, and finalized the approval for the 95% loan. Our client not only secured their first home but also achieved an immediate and significant equity boost thanks to the savings.
This case proves that securing finance is only half the battle; having a specialist partner who can navigate unexpected valuation issues and negotiate on your behalf is priceless.
Facing hurdles with your first home purchase valuation? Contact the First Home Buyer experts at Birdie Financial today.