A young married couple, Matt and Megan, who live on the Gold Coast and have two young children recently came into an inheritance and were able to build their family home without taking out a mortgage. Their home is valued at
and they wanted to use the equity in the family home to furnish the house –
Matt had a business five years ago that failed and he came out of bankruptcy in January 2016.
Mark has a job at the local supermarket and has been working there for 3 years; on a permanent part time basis. Megan receives Family Allowance benefits and a Centrelink parenting benefit.
They started looking for a lender who could assist them, as they had to use the Parenting Allowance to service the mortgage.
Based on the facts above, the mortgage broker suggested going to Pepper Money for the loan.
An application was sent to Pepper Money and the lender was able to assist Megan and Matt in offering a loan for $70,000 – as furnishing the property was considered to be an acceptable purpose for the funds. Pepper Money was able to use the Family Allowance benefits part A & B plus the Parenting Allowance plus Matt’s income to service the loan.
Pepper Money will also consider renovations, business use and payment of ATO debts as acceptable purposes.