The borrower encountered several challenges while purchasing the residential property, including:

1. Insufficient Equity: To secure the required funds, an additional property had to be included to meet the loan criteria, addressing the shortfall in equity for the investment property.


2. Refusal to Sign RFIF: The first mortgagee’s rejection to sign the Request for Information and Further Documents (RFIF) posed a challenge. This non-confirmation of the initial mortgage debt amount introduced a risk factor for the buyer.


3. Urgent Settlement: The timeframe for settlement was significantly short, and failure to meet the deadline could have led to severe consequences, such as loss of the deposit or missing out on the investment opportunity.


4. Valuation Report: The buyer also faced a critical challenge in obtaining the finalized valuation report from the valuer before the settlement. Failure to secure the report in time would result in the buyer having to pay a risk fee.

The process of purchasing a residential property can be riddled with obstacles, including loan approval hurdles, funding shortages, and tight settlement timelines. This case study highlights the significance of overcoming these challenges to successfully realize investment goals. Exploring alternative options, such as incorporating additional properties, obtaining email confirmations, and promptly finalizing valuation reports, proves vital in facilitating a swift and proactive settlement process.