Tashi, a dedicated Software Engineer with the New Best Friend, making strides in his career with an impressive annual income of $105,000, found himself at the precipice of a significant life milestone: purchasing his inaugural home in Australia. This decision was driven not just by personal ambition but also by the desire to provide a nurturing environment for his beloved single mother and three children, who were soon to journey from Bhutan to join him and his spouse. He envisaged securing a tranquil townhouse, ideally situated away from the urban hustle, to call their own.
His search brought him to a charming abode on Antill Street, Watson ACT, a location that promised a blend of convenience and natural beauty, being in proximity to the Dickson shopping precinct and the serene walking trails of Mount Majura. Tashi was captivated by the thought that this setting would offer his family, especially his mother and children, a touch of the familiar joys of hiking and outdoor exploration, possibly easing their transition and alleviating homesickness.
However, the path to homeownership was not without its hurdles. The revelation that multiple buyers had set their sights on the same property confronted him with an unforeseen challenge. Although his savings were sufficient to meet the 20% down payment for the $599,000 worth property, the prospect of depleting his financial reserves was daunting, particularly with the impending increase in household expenditures following his family’s arrival.
“I was on the verge of seeking more affordable housing alternatives when a conversation with a friend unveiled the opportunity of a 2% home deposit loan,” Tashi recounted. Initially skeptical, his diligence in pursuing this lead paid off when he connected with a knowledgeable broker who confirmed the viability of this financial avenue.
With the broker’s proficient assistance, Tashi was swiftly navigated through the loan application process, which culminated in a manageable deposit payment of approximately $12,000 and the acquisition of an in-principle approval[1] for the desired home—a development that nearly seemed elusive due to competing buyers.
Thanks to Tashi’s prudent financial management, coupled with his substantial earnings, he secured conditional approval for the loan, significantly preserving his savings by approximately $110,000. This accomplishment not only marked a pivotal moment in Tashi’s life but also underscored the importance of exploring and leveraging financial options, a testament to his meticulous and forward-thinking approach to achieving his dreams for his expanding family.
[1] In-principle approval aka conditional or pre-approval is when a lender agrees, in principle, to lend a borrower a specified amount of money for a home loan.
