A client approached Intrepid Wealth wanting to refinance while remaining with their existing lender. Their goal was to access $500,000 in equity for investment purposes and structure their lending across multiple loan accounts in a way that suited both their personal preferences and investment strategy.
At first, the existing lender indicated that the requested structure could be supported. However, after the applications were submitted, the lender advised that they would not proceed with the structure the client wanted.
The alternative offered by the existing lender created several issues. It did not provide the client with their preferred three-loan structure, it would have placed the full lending amount against their family home, and it also resulted in higher repayments than other options available in the market.
While the lender’s alternative was technically possible, the client was not comfortable with the way the debt would be structured against their family home. They also wanted a lending setup that gave them clearer separation between loan purposes and greater flexibility.
Our Solution
Rather than accepting a compromise that did not meet the client’s needs, Intrepid Wealth acted quickly to assess alternative lending options.
We contacted multiple lenders, presented the client’s full scenario, and confirmed which lenders would support the preferred structure. After comparing the available options, we recommended refinancing to a major lender that could provide:
- the full $500,000 cash-out amount for investment purposes;
- the client’s preferred three-loan structure;
- an offset account;
- a combination of fixed and variable loan accounts;
- interest-only repayments for three years;
- access to premium loan features under one package fee; and
- a lower monthly repayment outcome.
Although refinancing to a new lender involved higher upfront costs than completing an internal refinance with the existing lender, the recommended option was approximately $300 per month cheaper. This meant the additional refinance cost was expected to be offset within a relatively short period.
Once the client agreed to the revised strategy, Intrepid Wealth moved quickly to prepare and submit the two combined lending applications. After submission, formal approval was received from a major lender within half an hour. From the time the client agreed to the changes, it took just under 24 hours to achieve formal approval.
The Outcome
The client proceeded with the recommended refinance strategy and achieved the loan structure they had originally wanted, without needing to accept a structure they were uncomfortable with.
They secured the required equity release, maintained their preferred loan account setup, gained access to the features they wanted, and benefited from a lower monthly repayment outcome. The refinance also allowed the lending term to be reset to 30 years, helping reduce repayments in line with the client’s goals.
By challenging the initial lender outcome, comparing alternative lending policies and acting quickly, Intrepid Wealth delivered a solution that gave the client the right structure, lower repayments and greater confidence in their lending arrangements.
