Hi there, i need some ideas on getting past the lvr of 60%, any feedback would be much apprecaited.
Current situation is self employed for 2 years (abn and GSTregistered). I have no other houses or security available as this will be my first property purchase, currently living at home with parents, this will be an investment property. I have $50000 deposit. i have not found a property yet as i just am in need of working out how much money i could borrow.
The debt service ratio is not a problem as my parents are going to help me out there.I can't add any other security to increase the value side of the equation
The only house i could purchase with $50000 deposit would be with a value of $120000 ($70000 loan) lvr = 70000/120000= 58% under the 60%. I'd be lucky to buy a bathing box for that price.
I would like to purchase a house with high growth under a buy and hold stratergy to build up equity which would help me further down the track with purchasing more properties
Any ideas would be of great appreciationAlso i understand that the 60% for a self employed individual is to protect the bank from risk, isn't this so that if the bank has to sell immediatley even at below cost they still can recoup there money as the value of the house isn't likely to drop below 60%. If this is so why can an employed individual get a lvr of 80% do self employed houses cost more to sell? because i'm sure they sell at the same value as employed people. If the Debt service ratio is ok then whats the added risk?
Thanks again
Hi Shaun
Welcome to the forum mate and I hope you enjoy your time with us.
Your question we get asked by clients all the time.
Couple of points worth mentioning.
1) On the basis your income is sufficient to support a higher loan you would be able to borrowing upto 95% of the purchase price but would be required to evidence your income through Taxation returns.
2) If Tax returns are not available then a Limited document option maybe the way to go whereby the normal maximum loan would be 80% of the purchase price but you are normally required to show satisfacory savings of the deposit.
85% is also an option but the interest rates start to rise.
I can only assume the lvr of 60% you have been given is that a lodoc amount without a requirement for mortgage insurance.
Let me know if this is of help to you.
Richard Taylor | Australia's leading private lender
I saw a product the other day @ 80% LVR for abn of 2 years + so check with a reccomended and trusted broker.
85% is available for lodoc with ABN of 2 Years +
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
