By carefully examining his client's scenario, this broker changed a bank's tick-box approach
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A 25-year old car sales manager was looking to purchase his second investment property. However, he was only given a small pre-approved limit by his bank because his income was almost entirely based on commission. He had also just recently moved to another dealership and was told his prior years of service in his previous companies wouldn’t be counted.
By first understanding what the second investment meant for him, Elephant Financial Director and 2018 Young Guns finalist Shehan Wijayasinghe helped the young investor get the loan he needed. Together with his client, Wijayasinghe examined the potential repayments of various loan sizes and figured out which one would fit the client’s prepared budget.
“Once the strategy was complete, we worked on the credit side of things. Scenarios are the best way to do this,” Wijayasinghe told MPA.
Wijayasinghe found out that his client’s new employer and previous employer were under the same head company, meaning the client basically just moved franchises. This situation allowed Wijayasinghe to submit a better application, which the bank eventually approved despite his client’s income structure.
A model youth
Wijayasinghe said that he looks up to this client as a great example of someone who understands the importance of working diligently, saving accordingly, and living within his means – and who understands that investing in properties and building wealth is a long-term journey.
“In a world where the youth in Australia have a low attachment to property ownership, this client is a standout,” Wijayasinghe said. "He has his own self-managed budget, and has goals three to five years out. All these signs point to a mature mindset."
Wijayasinghe, however, admits that he had doubts about the application’s outcome.
"Credit, in my opinion, has lost its way, and judgement for good client outcomes has fallen to regulatory tick-box," he said. "We, as brokers, have to accept and navigate this by knowing the client as best as possible, and by running all scenarios across the credit hotlines and BDMs to help alleviate any unknowns."
For Wijayasinghe, it pays to be a detail-driven business because a well-structured, evidence-supported application delivers dividends and credit comfort.
