Does anyone know of a bank/lending institution that will do this?
Basically I am looking to buy at $145 000 and value at $150 000 so that I can cover closing costs using a LOC which is leveraged against the equity in my existing home. Overall the portfolio will still stay at 80% LVR or less ie I would have more than 20% equity across the two properties.
I have seen a message or two that indicate bank west might give it a whirl. Are there any others or does anyone have any tips on how I might improve my chances of making this happen?
Or any other alternatives anyone can think of?
cheersRav
In most instances, Valuers are independant from the banks. You can’t just label an institution as conservative or over the top, because they lend on what the Valuers put Market Value down as. Good luck finding a Valuer that will put more on it than what you paid.
If this property is in a country area, maybe try ANZ or NAB that have their own managers go out to have a look.
Maybe you could shell out for Mortgage Insurance, or find a lender that will accept a greater LVR.
Regards
Investor1313Are you saying you want a bank to lend on valuation price rather than contract price? There are lenders that will do this, but for lower LVRs – around 75%. You won’t get one that high, although if you approach your existing lender, they may be able to accomodate a bit depending on how big your portfolio is.
Terryw
Discover Home Loans
Parramatta
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Thank you for your thoughts everyone.
I have already spoken to ANZ on this as they are my current financier and the valuer there said his hands are tied as it is against bank policy.
I am only a little fish, so as yet they are not falling over themselves to help out.
Perhaps I have found a better deal now anyway.
regards
rav
In 99% of property loans I have put through lately the valuation comes in at the purchase price so it would be difficult to find a lender that would get a valuer to go above that unless it is a “favourable purchase” (as in you are buying it from a family member for less than the market value or something similar to that).
Depending on which area you are located in I have found the valuations for RAMS and Suncorp come in higher than most in the area that I am located (Port Stephens/Newcastel) but honestly they havent come in higher for a purchase.
I would recommend you get a broker to look at your overall structure and make a recommendation based on your asset/liability position. A lot of lenders will lend to 100% now anyway on full doc loans at very competitive rates. RAMS will now lend to 100% at their standard variable full doc rate.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]There’s an answer to your question already posted above if you think laterally…..
;o)
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