I have recently secured a property in Nth Qld off market for $240,000. I personally arranged a valuation with a major bank panel valuer prior to purchase, who valued the property at $300000.
My broker tells me that all the banks will still only give finance based on the lower of either the valuation or contract price.
I want to borrow 80% of the valuation ,ie $240000 and thereby achieve 100% finance (excluding costs) .
Can anyone tell me if this is possible?
Who will do it?
Any experience in this situation?
Thanks in advance.
AS[blink]Most will do it in specific circumstances. Most won’t because they want to see your ‘hurt money’ put into the deal.
When you say you secured the property ‘off-market’, what do you mean?
If it is from a relative or friend, this falls into the category of ‘advantageous purchase’ and you should have no trouble obtaining 80% of the valuation amount if the vendor provides a letter supporting your claim.
I will wait to hear the ‘off-market’ definition before I add to this.
The Mortgage Adviserhttp://www.themortgageadviser.com.au
One way to do it maybe to pay cash (using a LOC) and then get the loan. They could then base it on value since you would already own it. Of course, not many people could do this.
I know of one lender that could do it based on valuation – with a max LVR of 70%. But rates would be higher than normal.
And one more point. Are you sure your valuer will reassign the valuation conducted into the lender’s name? If the bank has to re-order the valuation, it is likely the same valuer will revalue much lower -especially if the purchase price is known.
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
A valuation for mortgage purposes usually does come in lower than a standard valuation. However, if the lender you choose does under value the property, you have something strong to fall back on if your own valuation is solid.
As for the LOC, assuming you had other property with sufficient equity, save your money and use a standard loan instead!
The Mortgage Adviserhttp://www.themortgageadviser.com.au
Hi fellas..
don’t mean to get stroppy but where is the creative side to all of this?.. Pay cash? that’s original.. save money, use equity.. get a standard loan? …. sorry guys but let’s offer some ‘creative’ solutions to help here..after all, this is ‘Steve McKnights’ business. (read his books etc?) Instead of accepting the staus quo, lets look at ideas to help this person..Apostle
The trouble is some people equate being creative with doing things dishonest or illegal.
Maybe one way around you dilemma is to ask for vendor finance, or to try to borrow the deposit elsewhere.
Once settlement has taken place, you could then refinance or increase your loan.
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
Fantastic solution Apostle
Out of the 5 posts of yours i have read i can’t see 1 that is actually constructive.
As Terry points out there is a difference in being creative and dishonest or illegal.
Also it is difficult to make a constructive comment when you dont have all the facts to hand. I think what Terry and Robert have written to date is perfectly sensible.
Don’t forget you are more than welcome to put in writing your constructive creative comment.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Personally, I am waiting to hear whether the property was bought under the guise of ‘advantageous’ purchase. If it was, there is no need to get creative as the solution is simple. What is the point in guessing when hardly any information has been provided?
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]Sorry about my delay in replying.
This was not an ‘advantageous’ purchase. The vendor wanted to sell the property himself but had no idea of real market value and sold it for less than it was worth. It was not advertised. We just happened to be in the right place at the right time. We ordred the valuation without the valuer knowing the purchase price. They valued it 20% higher than our purchase price.
I can complete the purchase via the usual channels but I thought that this is an opportunity to try do do something creative!
Thanks . ASGood work. You can only work within the system, you just have to try to learn how to make it work in your favour. I think you will find that when you get it revalued, after the valuer finds out the purchase price, it may not come in as high as the initial valuation.
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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