Hi all
Had an interesting loan offer yesterday, thought I’d post it here to see if this a common thing or not!
The original loan advice was for 80% of contract or valuation, whichever was lower.
The valuation come in the same as the contract price, so no problem there.
However the vendor is leaving 10% in at settlement as vendor finance, so I’m only paying 90% upfront at settlement.
The lender has deducted the 10% from the settlement, and will only lend me 80% of the amount to be handed over at settlement, ie 90%.
So now instead of an 80% lend it’s more like a 72% lend.
Is this common? It’s a lo doc loan. [glum2]Keep smiling
Felicity
Banks go on either valuation or contract, which ever is lower. And because the owner is giving back 10%, the bank assumes that this 10% is takn off the contract price for lending.
You could always go back with a normal contract, with a side note (which of course is not inc. in the contract as it’s an entirely seperate issue). Of course you should tell the bank the side note exists. Or you could try to find a pretty flexible lender… if one actually exists…
Rgds.
Lucifer_auFlexible lender
[lmao]Keep smiling
FelicityFW
Have a look at Adelaide bank.
I think the problem may be with the way the cotnract was structured, as Lucifer has said. May be too late now??
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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