Finance scenarios

Explore our growing collection of residential, commercial and business finance scenarios. Illustrative examples are labelled and are not real client results or guarantees.

Planning a first home purchase

Illustrative example — not a real client result

Turning a savings goal into a clearer buying plan.

The challenge

A first-home buyer has savings but is unsure how much to reserve for purchase costs and what repayments could look like.

The approach

  1. Separate the deposit from purchase costs and an emergency buffer.
  2. Compare indicative repayments with income, regular expenses and existing debts.
  3. Discuss the documents and lender assessment needed before making commitments.

Example outcome

In this example, the buyer has a clearer budget and a document checklist before seeking a lender assessment.

A borrowing estimate is a planning tool, not a loan approval.

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Looking beyond a lower interest rate

Illustrative example — not a real client result

Comparing the overall costs of refinancing.

The challenge

A homeowner sees a lower advertised rate but wants to know whether switching loans would actually suit their circumstances.

The approach

  1. Compare interest, ongoing fees and the features the homeowner uses.
  2. Include switching costs and any break costs in the comparison.
  3. Check the effect of changing the remaining loan term.

Example outcome

In this example, the homeowner can compare the current loan with an alternative on a more complete basis.

A lower rate alone does not establish that refinancing is suitable.

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Getting self-employed income organised

Illustrative example — not a real client result

Preparing business income information for a home loan.

The challenge

A self-employed applicant has income that varies and needs to understand which records may help a lender assess the application.

The approach

  1. Discuss the business structure and how income is received.
  2. Gather relevant tax returns, financial statements and existing debt information.
  3. Check documentation requirements with the proposed lender.

Example outcome

In this example, the applicant has a more organised set of records and knows which information still needs to be provided.

Documentation and income assessment vary between lenders.

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Planning an investment property

Illustrative example — not a real client result

Considering costs beyond the purchase price.

The challenge

An aspiring investor wants to understand how a property loan could fit alongside their existing home loan and household expenses.

The approach

  1. Review current commitments and the proposed loan repayments.
  2. Allow for vacancies, property expenses and a cash buffer.
  3. Discuss loan options while referring tax and investment questions to appropriate advisers.

Example outcome

In this example, the investor has a clearer view of the finance questions to resolve before proceeding.

Property finance does not replace personal tax or investment advice.

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Coordinating a move to the next home

Illustrative example — not a real client result

Understanding the finance steps around buying and selling.

The challenge

A household wants to move but is unsure how the sale of their current home and purchase of the next property could fit together.

The approach

  1. Review existing debt, available savings and estimated transaction costs.
  2. Discuss sale and purchase timing and potential funding gaps.
  3. Explore options subject to lender assessment and obtain legal advice on contracts.

Example outcome

In this example, the household can identify the timing and funding questions to discuss before entering contracts.

Settlement timing and loan approval should not be assumed.

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Exploring premises for a business

Illustrative example — not a real client result

Preparing for a commercial property finance discussion.

The challenge

A business owner is considering buying premises and wants to understand what information a commercial lender may need.

The approach

  1. Discuss the property, intended use and proposed ownership structure.
  2. Review business financials, cash flow and the available deposit.
  3. Consider the proposed loan term, security and lender requirements.

Example outcome

In this example, the owner has a clearer brief for comparing commercial finance options.

Commercial loan terms and deposit requirements depend on the application and lender.

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Replacing essential equipment

Illustrative example — not a real client result

Comparing equipment finance with business cash-flow needs.

The challenge

A business needs replacement equipment but wants to preserve cash for everyday operating expenses.

The approach

  1. Identify the equipment cost, expected use and useful life.
  2. Compare finance repayments, fees and any final payment.
  3. Consider the effect on cash flow and discuss tax treatment with an accountant.

Example outcome

In this example, the owner can compare funding structures against their operating budget.

A smaller regular repayment may still involve fees or a final payment.

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Understanding a working-capital gap

Illustrative example — not a real client result

Matching a finance discussion to the business need.

The challenge

A business pays suppliers before customers pay invoices and wants to understand possible ways to manage the gap.

The approach

  1. Review the timing of receivables, expenses and current commitments.
  2. Clarify the amount, purpose and expected duration of the funding need.
  3. Compare potential structures, repayment obligations and lender requirements.

Example outcome

In this example, the owner has a more specific funding brief rather than choosing a product from its advertised limit.

Finance suitability depends on the business cash flow and the terms offered.

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Asking the right SMSF finance questions

Illustrative example — not a real client result

Coordinating specialist advice before exploring an SMSF property loan.

The challenge

SMSF trustees are considering a property purchase and need to understand the finance questions alongside their legal and financial advice.

The approach

  1. Consult appropriately qualified advisers about the fund strategy, structure and compliance.
  2. Discuss potential lending requirements, deposit and ongoing cash flow.
  3. Coordinate the finance discussion with the trustees' accountant, legal adviser and licensed financial adviser.

Example outcome

In this example, the trustees have a list of finance and specialist-advice questions to resolve before progressing.

An SMSF loan enquiry is not a recommendation to establish a fund or buy a property.

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Funding a renovation in stages

Illustrative example — not a real client result

Matching the loan to how the builder is paid.

The challenge

A homeowner has a builder's quote for an extension and wants to understand how the work could be funded without drawing the full amount on day one.

The approach

  1. Review the building contract, quote and progress payment schedule.
  2. Compare using existing equity with a construction loan that pays the builder in stages.
  3. Allow for a contingency, plus the valuations and inspections a lender may require.

Example outcome

In this example, the homeowner understands how progress payments work and what a lender may need before work starts.

Construction loans usually charge interest on the amount drawn, while lenders assess the full loan amount.

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Using equity to help family

Illustrative example — not a real client result

Understanding what releasing equity involves.

The challenge

Homeowners with a largely paid-off home want to help their child with a deposit and are unsure what borrowing against their home would mean for them.

The approach

  1. Estimate usable equity from a current valuation and the lender's maximum loan-to-value ratio.
  2. Check the repayments fit their own income, expenses and retirement timeline.
  3. Discuss loan structure while referring tax, estate and legal questions to appropriate advisers.

Example outcome

In this example, the homeowners understand how much they could release and what the repayments may look like before deciding.

Releasing equity is new borrowing secured against your home, with its own repayments.

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Financing a small development

Illustrative example — not a real client result

Planning funding from site purchase to completion.

The challenge

A first-time developer has a site with a permit for three townhouses and wants to understand how funding works across each stage of the project.

The approach

  1. Map the project stages: land, construction, completion and sale or hold.
  2. Review the feasibility, builder's contract, presale requirements and contingency.
  3. Compare bank, non-bank and private funding, including fees and how interest is charged.

Example outcome

In this example, the developer has a staged funding plan and knows what each type of lender is likely to ask for.

Development lenders assess both the project and the borrower, and requirements vary widely between lenders.

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Keeping the home after a separation

Illustrative example — not a real client result

Understanding whether taking over the home loan is financially workable.

The challenge

A homeowner wants to remain in the family home after separation and needs to understand the borrowing involved in a proposed property settlement.

The approach

  1. Review the proposed settlement with the homeowner's solicitor before relying on it.
  2. Assess income, expenses, existing liabilities and any amount needed to buy out the other owner.
  3. Discuss valuation, loan structure and lender requirements alongside independent legal advice.

Example outcome

This example shows the questions to resolve before deciding whether a new loan in one person's name is suitable and achievable.

A property settlement does not automatically release a borrower from a loan. Legal arrangements and lender approval are separate matters.

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Buying out family from an inherited property

Illustrative example — not a real client result

Planning the funding for an agreed transfer between beneficiaries.

The challenge

One beneficiary wants to keep an inherited property while the others wish to receive their share of its value.

The approach

  1. Clarify estate administration and the proposed ownership transfer with a solicitor.
  2. Review the property's value, existing debt and the amount required for the buyout.
  3. Assess repayments and lender requirements, with tax and duty questions referred to qualified advisers.

Example outcome

The example identifies the funding and professional advice needed before beneficiaries commit to a transfer.

Estate, tax and transfer requirements depend on the circumstances. An inheritance does not itself guarantee loan eligibility.

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Buying or refinancing from overseas

Illustrative example — not a real client result

Considering Australian property finance when income or residency is overseas.

The challenge

A borrower living overseas wants to understand how an Australian lender may assess their income and proposed property purchase or refinance.

The approach

  1. Establish citizenship, residency, income currency and the proposed use of the property.
  2. Review income evidence, currency conversion and the lender's treatment of overseas liabilities.
  3. Discuss identification, settlement logistics and any legal or foreign-investment requirements with suitable advisers.

Example outcome

This example helps the borrower identify documentation and eligibility questions before making a commitment.

Overseas income and residency rules differ between lenders, and additional legal requirements may apply.

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Borrowing in or near retirement

Illustrative example — not a real client result

Reviewing repayments, income changes and the proposed loan term.

The challenge

A homeowner approaching retirement wants to consider a loan while allowing for a possible change in household income.

The approach

  1. Review current income, expected retirement income, expenses and existing debts.
  2. Discuss the proposed term and how repayments or loan repayment would be managed over time.
  3. Refer retirement, superannuation and investment questions to a licensed financial adviser where appropriate.

Example outcome

The example sets out the affordability and planning issues to consider before a lender application.

Retirement-related borrowing needs individual assessment. General loan information is not retirement or investment advice.

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Reviewing options after credit problems

Illustrative example — not a real client result

Understanding a credit history and whether a borrowing enquiry is appropriate.

The challenge

A borrower with past credit issues wants to understand their position before applying for another home loan.

The approach

  1. Review credit-report information, current debts and the circumstances of past difficulties.
  2. Check income, expenses and recent repayment conduct before considering lender criteria.
  3. Discuss whether waiting, seeking financial counselling or making a carefully assessed enquiry is the appropriate next step.

Example outcome

This example focuses on understanding available next steps rather than assuming another loan will be suitable.

Credit issues cannot be promised away. If repayments are causing hardship, contact the lender or an independent financial counsellor.

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Buying a commercial investment property

Illustrative example — not a real client result

Looking at the property, lease and borrowing position together.

The challenge

An investor is considering a leased commercial property and wants to understand how a lender may assess the purchase.

The approach

  1. Review the purchase, lease terms, tenant position and proposed ownership structure.
  2. Consider valuation, deposit, rental income, expenses and repayment capacity.
  3. Discuss lender criteria alongside legal, tax and property due diligence from appropriate advisers.

Example outcome

The example outlines the information needed to explore a funding structure before committing to a purchase.

A lease or advertised rental return does not guarantee finance, occupancy or investment performance.

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Refinancing a commercial loan

Illustrative example — not a real client result

Comparing the existing facility with a proposed replacement.

The challenge

A commercial property borrower wants to review an existing loan's pricing, term and conditions.

The approach

  1. Review the current balance, expiry date, security and any facility conditions.
  2. Compare proposed repayments, fees, valuation requirements and ongoing obligations.
  3. Consider the borrower's income, property leases and ability to meet a new lender's criteria.

Example outcome

The example shows how to compare the whole facility rather than just an advertised interest rate.

Refinancing can involve costs and changed conditions. A lower rate alone does not establish an overall benefit.

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Funding construction in stages

Illustrative example — not a real client result

Aligning proposed drawdowns with the project's progress.

The challenge

A property owner needs to understand how construction payments could be funded as work progresses.

The approach

  1. Review the building contract, approvals, budget and proposed construction stages.
  2. Discuss progress inspections, drawdown conditions, borrower contributions and contingency funding.
  3. Map the proposed repayment or refinance position at completion.

Example outcome

This example identifies the timing and funding questions that should be addressed before construction starts.

Progress payments remain subject to facility conditions and lender assessment; cost overruns need separate consideration.

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Reviewing finance for unsold completed property

Illustrative example — not a real client result

Considering a completed project's debt and proposed sales timeline.

The challenge

A developer has completed properties that have not yet sold and needs to review an approaching facility expiry.

The approach

  1. Review completed titles, valuations, remaining debt and existing loan conditions.
  2. Consider holding costs, sales evidence and realistic sale or refinance assumptions.
  3. Compare any available options, including fees, security requirements and the proposed exit.

Example outcome

The example highlights the information needed to assess a temporary holding or refinancing proposal.

Completed stock does not guarantee refinance availability. Sales and repayment assumptions need careful scrutiny.

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Considering private and non-bank funding

Illustrative example — not a real client result

Understanding a facility's costs, conditions and repayment plan.

The challenge

A commercial borrower wants to explore funding outside traditional banks for a specific property or business purpose.

The approach

  1. Clarify the purpose, amount, proposed term and security available.
  2. Review total costs, default provisions, legal terms and the proposed repayment or refinance strategy.
  3. Compare options only where appropriate and obtain independent legal advice before committing.

Example outcome

This example focuses on understanding the obligations and risks of a proposed facility before deciding.

Private and non-bank facilities can carry materially different costs and risks. Availability does not establish suitability.

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Buying a business or franchise

Illustrative example — not a real client result

Reviewing acquisition funding alongside business due diligence.

The challenge

A purchaser wants to understand the finance involved in buying an existing business or franchise.

The approach

  1. Review the proposed purchase, financial records, purchaser experience and available contribution.
  2. Consider working capital, security, repayments and the business's capacity to service debt.
  3. Arrange independent accounting and legal due diligence, including any franchise or lease obligations.

Example outcome

The example outlines funding questions to consider before signing a purchase agreement.

A finance assessment is not a valuation or endorsement of a business. Independent due diligence remains essential.

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Buying out a business partner

Illustrative example — not a real client result

Considering funding for a proposed change in ownership.

The challenge

A business owner wants to purchase a departing partner's interest while maintaining enough cash for ongoing operations.

The approach

  1. Clarify the proposed transaction, valuation and ownership arrangements with professional advisers.
  2. Review business earnings, existing liabilities and the borrowing required.
  3. Assess repayments, working capital and any security or guarantees a lender may require.

Example outcome

This example maps the finance and advice needed to assess the proposed ownership change.

Partnership and shareholder agreements, tax consequences and lender approval need separate consideration.

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Refinancing or consolidating business debt

Illustrative example — not a real client result

Comparing repayments and total costs across existing facilities.

The challenge

A business owner has several facilities and wants to review whether a different structure could better match the business's cash flow.

The approach

  1. List balances, repayment schedules, rates, fees and security for each existing facility.
  2. Review business financials and compare any replacement facility over its full proposed term.
  3. Consider exit costs, additional security and the effect of extending repayment periods.

Example outcome

The example supports a whole-of-facility comparison before deciding whether refinancing is appropriate.

Lower periodic repayments can increase total interest if the debt is repaid over a longer term.

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Reviewing options for an ATO debt

Illustrative example — not a real client result

Looking at a tax liability alongside the business's overall finances.

The challenge

A business has a tax debt and wants to understand the financial implications of addressing it.

The approach

  1. Confirm the liability and available arrangements with the ATO and a registered tax adviser.
  2. Review business cash flow, existing debt and the reasons the liability arose.
  3. Consider whether any borrowing is suitable, including costs, repayments, security and alternatives.

Example outcome

This example puts professional tax advice and sustainable cash flow ahead of assuming a new loan is the answer.

Borrowing to pay a tax debt creates another repayment obligation. Loan information is not tax advice.

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Considering invoice finance

Illustrative example — not a real client result

Exploring funding linked to eligible unpaid invoices.

The challenge

A business invoices customers on terms and wants to understand whether invoice-based funding could assist its cash-flow cycle.

The approach

  1. Review the debtor ledger, invoice terms, customer concentration and payment history.
  2. Discuss eligibility, advance amounts, recourse, fees and collection arrangements.
  3. Compare expected costs and repayment obligations with the business's cash-flow needs.

Example outcome

The example identifies the questions needed to assess a proposed invoice-finance facility.

Not every invoice or customer is eligible, and the business's obligations depend on the facility terms.

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Arranging a bank guarantee for a lease

Illustrative example — not a real client result

Understanding a landlord's proposed security requirement.

The challenge

A business taking premises is asked to provide a bank guarantee and needs to understand how it may be arranged.

The approach

  1. Review the amount, wording and timing required under the proposed lease with a solicitor.
  2. Discuss the lender's security, cash backing, fees and assessment requirements.
  3. Consider how the guarantee affects available cash or other facilities and how release is documented.

Example outcome

This example explains the matters to resolve before relying on a guarantee for a lease commitment.

A bank guarantee is a contingent obligation, not additional working capital, and may require security or cash backing.

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Funding a fitout for new premises

Illustrative example — not a real client result

Planning the fitout budget alongside lease and operating costs.

The challenge

A business moving into new premises wants to review finance for the proposed fitout and equipment.

The approach

  1. Review quotes, lease arrangements, landlord contributions and the planned completion schedule.
  2. Separate equipment, building work and working-capital needs when considering funding options.
  3. Assess repayments alongside rent, opening costs and a contingency for delays.

Example outcome

This example helps identify the information required to assess a fitout funding proposal.

Funding eligibility can differ between equipment and building works, and a finance term should be considered alongside the lease.

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