I have a farm that is now worth around 600k more than my buy price nine months ago. The way i see it , it is lazy equity sitting there.
I havn’t worked with brokers much before and bank with NAB. They do up to 70% LVR . Next week I have my manager coming out and we might see what is available. What other options would I have as far as lenders and options go . [winking]
where is your farm?
We also have a farm and because of its location to town and the fact that it has more than one title the bank will most probably lend to 85% not certain but that is the figure that has been discussed.
Brokers can be great, however, if you do your own submission in a professional manner and send it to different banks you may be able to complete the deal yourself. The last broker we used cost us $5000.00 and the bank manager told us we should have just come to him in the first place. $5000 could be a house deposit!
Thanks Sampson
Not sure how it cost you 5k to go to a broker. I thought lenders generally absorbed commisions to brokers…
Many lenders have relaxed their policies on rural properties. It is now much easier to get finance on properties up to 100 acres. Beware of certain banks. They have a habit of changing their polcies for rural properties and calling in loans at short notice.
Terryw
Discover Home Loans
Parramatta
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“Brokers can be great, however, if you do your own submission in a professional manner and send it to different banks you may be able to complete the deal yourself. The last broker we used cost us $5000.00 and the bank manager told us we should have just come to him in the first place. $5000 could be a house deposit!”
While that may be true, the broker finds the person the best loan while a banker might not charge you a fee but they only have their product, so you may miss out on higher LVRs, or other features because one just goes to their regular banker.
Hellman
Must confess i am at a loss on how using a broker cost you $5000.
Most brokers get paid by the lender on settlement with no additional cost to the client. One of the advatages as it has been pointed out is that you can let the broker do all of the hard work and then give you a few recommendations.
NAB or any other Bank will only tell you what they can offer and certainly won’t be forthcoming with information about their competitors.
As Terry mentioned lenders these days have become a lot more competitive and anything 100 acres is considered standard for a lot of lenders.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Thanks Richard
I,m talking a lot more than 100 acres and I did in fact source my finance through a local broker for the purchase . This was the first time I had worked through a broker and i was very happy with the service and all that……
However , because I have most of my finance with the NAB already I suspect they have me by the short and curlys
[ohno] up to a point .Maybe I should be looking to sell and take my profits…. [worried]
Unlikely you will get MI if it is much over 100 acres so therefore probably limited to 80% max.
I wouldn’t sell just coz you feel trapped with your lender. If you want to give us some more details i would be happy to assit further.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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