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’.

How Paul Zahra of Auxo 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.