Hi,
Looking for a little advice. I have just had an offer accepted on a property in Wallaroo, South Australia, small Caostal town with at least 3 banks (including NAB). Property is a single title block with a LArge Federation style house that has been split into 5 rentable properties plus 4 additional “park home” style 2 bedroom villas on the back.
My banking manager at NAB (who I would normally use for this deal) is telling me that they will only take a maximum 70% of this property as security as to them is a commercial deal and difficult to value.
I’m not doubting him and I can still do the deal on this basis but would much prefer an 80% arrangement so I don’t need to tie up my PPOR in the deal.
Anyone experienced this with multi-rent properties and know of banks that will go to 80% in the circumstances I describe above?
My plan for the property is to community title the villas and the house and then sell the villas separately and hang onto the house.
Also anyone know a good mortgage broker in SA if I choose not to use NAB.
Again – any help much appreciated. Thanks, Paul
I will be happy to look at this deal. I am a mtge broker in SA plus an investor. Ring me on 0402 781 020[specool]
From my recollection most banks will class the deal as commercial when it goes over 4 dwellings (units etc) and thus will offer a lower LVR. 4 and under is classed residential and they'll go up to 80% (or higher with LMI)
Hi Paul
You will not unfortunately get the loan mortgage insured so will be limited to less than 80%.
The multi unit dwelling part is the problem.
Richard Taylor | Australia's leading private lender
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