Select Scenarios

Below you can find a range of scenarios to help illustrate how our loan products apply to borrowers in the real world. All scenarios are for illustrative purposes only.

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Prime

72-YEAR-OLD WIDOWER REFINANCES TO COMPLETE MUCH NEEDED HOME RENOVATIONS
Prime	Full doc	<60% LVR

How we helped >

John is a 72-year-old widower still living in the family home. He has paid off most of his mortgage, but is looking to take out $35k in cash to give his kitchen a much-needed upgrade and replace the flooring in the living area.

Due to his age and servicing requirements, John's application for refinancing was declined by his bank.

With a clear exit strategy and low LVR, Select's Prime full doc product was able to meet John's needs. Even better for John, after refinancing his mortgage repayments were less than he would have paid in rent if he'd been forced to sell.

John was delighted that he could stay in his beloved family home and undertake the renovations he needed to make it more comfortable and appropriate for his needs.

SINGLE MUM SAVES $580 A MONTH BY REFINANCING HER HOME LOAN
Prime	Full doc	65% LVR

How we helped >

Michelle is a single mother of two who has spent most of the last five years as a stay at home parent. Six months ago she returned to her job as a pediatric nurse after separating from her husband.

With an existing mortgage on a high interest rate and around $8k outstanding on a personal loan, Michelle was looking to refinance. Unfortunately when she applied to her bank, she was declined as she did not meet their servicing requirements.

After her rejection, Michelle sought out an adviser who talked to her about Select. We were delighted to be able to offer Michelle a more flexible solution with our Prime full doc product.

Not only was Michelle able to refinance and pay off her credit cards, thanks to a better interest rate she reduced her monthly outgoings by $580.

DIVORCEE STARTS FRESH WITH SOME PARENTAL HELP
Prime	Full doc	80% LVR

How we helped >

Daniel recently finalised his divorce and was keen to use his small matrimonial settlement to start the next chapter in a new home. His savings weren't quite enough for his dream property though, so his parents agreed to come on board and split both the deposit and loan equally between the 3 of them.

But because Daniel's parents are in their 60s, the mainstream lenders refused to approve a 30 year loan term.

Select worked with Daniel and his parents to understand their plans and agree on an appropriate exit strategy.

Daniel will live in the property and upgrade it to resell at a profit after 2-3 years. Exit strategy in place, Select was delighted to approve Daniel and his parents at a competitive Prime rate.

SINGLE MUM BUYS FIRST HOME AND REDUCES MONTHLY OUTGOINGS
Prime	Full doc	80% LVR

How we helped >

Single mum Diana has been saving for a home deposit for a couple of years, and due to a recent financial gift from her parents is finally ready to make the move.

But despite her great credit history and sizeable deposit, her bank rejected the loan because her parents' gift made up 12% of the purchase price, and she also did not meet their strict servicing standards.

After her bank's rejection Diana reached out to a mortgage adviser who helped her apply for a Select loan.

At a competitive Prime rate, not only did her loan service easily with Select, but her repayment ended up at $240 less than her previous rental payments. Diana was ecstatic to buy her first home and achieve security for herself and her daughter.

ALT DOC SOLUTION ENABLES SELF-EMPLOYED SHOP OWNER TO BUY HER FIRST INVESTMENT PROPERTY
Prime	Alt doc	80% LVR

How we helped >

Maria is a successful shop owner with a homewares store in Auckland. Last year she expanded her business to buy a second store a few suburbs over.

Her business was doing extremely well and she was keen to buy an investment property. But because she didn't have the required two years of financials from both stores to prove her income, she was turned down by a number of lenders.

Select was able to assess Maria's income using her last personal and business tax returns, coupled with 6 months' business bank statements and 6 months' GST returns.

Through Select's Prime alt doc product, Maria was able to get the finance she needed to buy the investment property she had her eye on.

Near Prime

MIDDLE-AGED COUPLE SET THEMSELVES UP FOR FINANCIAL FREEDOM
Near Prime	Full doc	80% LVR

How we helped >

Bernard and Louise are recent empty-nesters ready to downsize. They're looking to refinance their existing loan to purchase a new home, while keeping their current property as an investment.

When they first contacted their adviser two years ago, they were carrying a large amount of short term debt, and also had 5 recently paid defaults between them, so the banks declined their application.

Their adviser worked with Bernard and Louise to set up a realistic budget and repayment plan, and in two short years they were able to reduce their debt by an impressive $77,000.

With all their defaults now more than 2 years old, a solid exit strategy in place, and their remaining debt well within servicing limits, Select was happy to approve their Near Prime loan and help Bernard and Louise start the next chapter in their lives.

RECENTLY SELF-EMPLOYED COUPLE GET A MORTGAGE TO BUY THEIR OWN HOME
Near Prime	Alt doc	80% LVR

How we helped >

Mike and Lynn have two children and a successful carpet cleaning business which they started 18 months ago. After renting for the last 10 years they were very keen to buy a family home.

While they had an excellent income from their business and a clear credit history, the fact that they had been in business for less than two years and had no financial statements prepared meant their previous application for a mortgage had been declined.

Select assessed Mike's income using 6 months of GST returns and 6 months of business bank statements.

The couple were able to successfully get the finance they needed to buy their home through Select's Near Prime alt doc product. They are excited to move into their new home and finally have some stability for their family.

Specialist

FAMILY PULLS TOGETHER TO MEET EVERYONE'S NEEDS
Specialist	Full doc	70% LVR

How we helped >

Christos and Sophia are a busy professional couple running two businesses and caring for their young daughter. They recently ran up a handful of small defaults when covering hospital bills for a family member overseas.

Now Sophia's father's health is declining, and according to their cultural traditions they want to move in with him to provide care. But the property her father owns outright is too small for all four of them, and between a lack of deposit and their recent credit hiccups, Christos and Sophia don't know if they can purchase a new family home.

After seeking financial advice, Sophia's father gifted his property to the couple to give them the financial boost they needed to purchase a property that met their needs.

Since only one of their defaults was less than 2 years old, they qualified for Select's Specialist rates and could now afford a larger home, and even keep the original property as an investment.

MARRIED COUPLE BUY NEW HOME AND TAME THEIR OUT OF CONTROL DEBT
Specialist	Full doc	75% LVR

How we helped >

Gina and Rahim are married with no children. Both have stable incomes now, but after helping Gina's sister through a contentious divorce, they are struggling under $65k of credit card debt and high monthly outgoings.

They were keen to downsize so they could reduce their mortgage payments and be closer to Gina's parents, but due to their level of debt and a couple of small arrears, their loan application was declined by another lender.

Thanks to Select's Specialist product, Gina and Rahim were able to get the finance they needed to buy a new home that was more suited to their needs, and get their short-term debt under control.

As a result of refinancing, they were also able to reduce their outgoings by $900 per month. This was a huge relief and meant they could stop going backwards and start looking forward to a stronger financial future.

MARRIED COUPLE ON A SINGLE INCOME REFINANCE TO BUILD A GRANNY FLAT
Specialist	Full doc	75% LVR

How we helped >

Jimmy, Ann and their daughter own a small two bedroom home, which is bursting at the seams since Ann's elderly mother moved in. So they decided to refinance to consolidate some debt and get enough cash to build a small granny flat in their backyard.

But as a result of COVID-19, Jimmy has recently lost his job as a hotel manager. Due to his unemployment as well as a few missed mortgage payments last year, the couple were finding it very difficult to get approved for a new home loan.

Jimmy and Ann were able to get the finance they needed thanks to Select's Specialist product.

Not only will they be able to build their granny flat for Ann's mother, their monthly repayments have been reduced by over $880, which will take some of the pressure off until Jimmy finds another job.

MARRIED COUPLE CONSOLIDATE $72K OF DEBT AND SAVE $1800 A MONTH
Specialist	Full doc	80% LVR

How we helped >

Angela and Elise are married with a seven-year-old son. Both work full time and they have a mortgage on their two-bedroom apartment in Christchurch. Last year, they took out a personal loan of $80k to cover the cost of treatment for their son, who has some ongoing health issues.

The couple were keen to refinance, but due to the fact they still had $72k in short term debt, they were declined by their bank.

Thanks to Select's Specialist full doc product, Angela and Elise were able to refinance their mortgage and consolidate their short term debt.

Their new mortgage payments are now $1800 less than they were previously paying, which they can put towards their son's medical expenses.

Scenarios are for illustrative purposes only. This publication is intended for Select introducers and referrers only and is not to be distributed to anyone else, including consumers, under any circumstance. Information in this publication is given in good faith, believed to be accurate at the time of publication and subject to change. Information accurate as at 4 September 2020.