hi this is a Connie from prosperity finance thank you for watching our video
well in this video I'm going to use a case study to discuss why loan structure
is so important we recently have a client who is actually finance manager
in a big company well it's kind of a dream client for us because we love to
have a straightforward application well in this case with her income level she's
easy to get a refinance or restructure loan approved what we did for the client is
not just get the calculation done but we also look at the whole structure and
find out what happened what the issues are in the current structure so this client is
actually on her own she has a really good income well she bank with the two
banks one bank has a mortgage with revolving
facility and she hardly used and the other bank she has her family
home in the trust as well as another rental property and they have a big big
loan in in that bank and they fix the whole lot with one fixed term so after
reviewing I gave her recommendation in the following area firstly the family
trust is actually can be discharged when the rental property was sold
from the family trust initially to the LTC there was a Deed of Dead agreement
so the trust can actually call the dead and they clear the dead and mortgage free
so that the family home is safe now between the two rental properties they are
all under the same entity which was LTC now ideally we should separate the
two so there's no one bank has a full control over both properties now after
reviewing we find out there is a property is actually has much higher
value so we max out the loan against that property
and make that interest only so that the other bank will have a minimum
loan amount and the client can start paying principal and interest so that
loan can be paid off as quick as they can and also if they need to use the
equity to buy another property later on that's the opportunity so when we choose
the lender for the big loan we'll look at in the long term if this bank is
competitive in terms of rates and for the smaller loan we'll look at what's
the product feature available there and what's a future borrowing
capacity from that bank should the clients looking to buy another property
so we look at the both and we come up with a plan and with a smaller loan that
bank actually have a product feature that the client can offset their loan
against their relative's deposit so that she can pay off even quicker and
save lot of interests so in the end this client so happy and she she was quite surprised
that how much we could do for her so this is the classic example that the
long structure is very important and every client that work with us we're not
just work calculate the long amount but before we make a submission to the bank
we actually have a meeting with them and after the file review we actually give
them a recommendation on the lender option the repayment plan the product
feature and alsoany other plan long term that we can support when we submit
the current application and we're not just give the advice only we also tell
them the reason behind it so they can make a really informed decision so I
hope you find this very useful and if you like us to help you just to look at
your loan structure and repayment plan are still meeting your needs feel
free to contact us and we're more than happy to help thanks for watching I'll see
you next time bye-bye