Challenge

A successful business couple was knocked back on a refinance bid.

Josef and Beverley, a couple in their 50s, run a successful export-import consultancy out of their own commercial property. When their 5-year interest-only loan was nearing expiry, they sought an extension on better terms. Their bank, however, said ‘no’.

Solution

How Paul Zahra of Cerberus helped the couple achieve beyond original objectives.

The couple’s $2 million facility was secured by their home and divided over three asset groups: the commercial property, shares and managed funds, and a small amount on their owner-occupied home.  They turned to Paul Zahra to find them another 5-year deal on the same security and loan structure.

It was a complex job involving three separate companies (the trading business, a family trust, and an investment trust), with financial and tax records required for each of the entities and parties involved.

But Josef and Beverley then raised the degree of difficulty when they set their hearts on adding a $1.8 million 40-acre rural property into the mix. The acquisition would nearly double their proposed loan amount and it introduced a regulatory compliance hurdle; when buying a rural property with funding backed by an owner-occupied home, the borrower must convince the lender the asset will not be used to generate income.

Paul tested the water with eight lenders and narrowed the field to two, inviting them in several rounds of negotiations to match or beat each other’s terms. Eventually, Paul got the deal over the line in a single transaction, securing another 5-year loan and improving the rate by 0.5% compared with the former facility.

Outcome

  • Met the clients’ key goals in one transaction with a major bank
  • Improved the interest rate and fees
  • Achieved pre-approval for purchase of 40-acre rural property

$1.8m

DELIVERED

in purchasing pre-approval along with better rates and fees

Refinancing to buy rural property

“We are delighted with the outcome achieved for us by Paul Zahra. Highly recommended.”

Couple needed to refinance and purchase rural property
Beverley and Josef R.

Clients of Paul Zahra from Cerberus Finance

This is a true client case study and only the names and images have been changed for privacy reasons.

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Paul Zahra

Paul Zahra

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1300 558 130

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