Hi Everyone,
We are wanting to purchase a property and my bank manager has said that we can only borrow 70% of the property even though we have been long time customers and have great income. Also my daughter is purchase an off the plan unit and the sales person kept mentioning a sunset date. Does anyone know what this means?
Regards
Lilian
Hi there
It's hard to comment on why they are only offering such a low LVR – are you PAYG employees or self employed?
What's the location of the property and what type of property is it?
Different banks have different policies so while one bank may restrict you to a 70% LVR – another may go higher.
A decent broker will advise.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Lilian,
There is a number of reasons why the bank with restrict your LVR. I dare say that it is due to the type of property you are purchasing or the loan amount?
Also re the sunset date – this is a date that the developer's bank will give the developer to complete the development. In other words, the developer does not have an infinite time to finish the development. Normally the developer will give you a date that he expects the development to finish and then there is the sunset/settlement date which is noted in the contract of sale. Generally speaking (if not in all cases) the sunset date is far greater than the date the developer expects to complete the development.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
HI there,
Here is a info for off the plan purchase.
It gives a clear definition of Sunset clause(Page 3 ) + more
http://www.commerce.wa.gov.au/consumerprotection/PDF/Publications/buying_land_off_the_plan.pdf
Hi,
The property is located in Rose Bay and it is a ordinary double story house. The loan amount is just over $2 million. I do have about a fair bit in savings but only wanted to use 20% if possible.
Ok problem is with the loan amount – some lenders such as Westpac go to 70%. You have 2 options:
1. If you need to use your current lender for any specific reason then you may need to provide a term deposit as security to mitigate the LVR or
2. Go with a different lender that will go to 80% like NAB. NAB also has room to move on higher loan amounts where as other lenders again like Westpac run out of steam for over $1 mil loans
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Shahin,
Are you located in Sydney? I would like to run through a few more questions with you if that's ok?
Sounds like you just need to use a lender that has an appetite for larger loan sizes – you've got options available and make sure that the lender you decide to go with provides decent pricing on that loan amount.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
That's fine you can give me a call and yes our office is in North Sydney.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
NAB can go up to 95% LVR up to $2million from memory.
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
Hi Terry
They used to but hate to say those days have gone.
QBE put a stop to that.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
I just checked my emails and have one from NAB in Nov this year – max $2.5mil at 95% LVR they were saying then.
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
Terry are we talking NAB Retail as if so the maximum at 95% lvr is $1.5M.
They have DUA with QBE to a maximum of $2.5M and 95% however you won't get Credit to approve anything over $1.5m
Homeside is different although of course they use Gemworth.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Technically they can go to $2.5m at 95% however good luck getting anything actually approved at that level! We have done a couple just under $2m at 85% or 90% however we haven't tried our luck for any higher LVRs around those loan amounts.
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