Just thought id post what i learnt this morning , I had a meeting with my morgage broker and we were discussing regional properties. He informed me how banks look at these properties . They will try to only loan 50 percent of the property value,
and 70 maybe 80 percent if the population is greater than 9000. Alot of towns they wont lend money at all, so if your currently thinking of puting offers in on a ip in a small country town better check with your bank on how much you can lend.Hope this helps
Some banks will best to talk to some mortgage brokers.
I would suggest as long as you put on the contract subject to finance it wouldn’t matter if u can’t get the loan. But I believe if you really want it you would be able to find the finance.
Regards Bear
Living in a country town with a pop og 5000 the local Commonwealth bank in town has absolutley no problems with 80% LVR for properties in town
I had a problem with this. My husband and I had a combined income of $100,000 and couldn’t get a loan from a broker cause the property was zoned rural (25 minutes from Hobart). We finally managed to secure a mortgage thru CBA
One of the main problems is mortgage insurance.
The mortgage insurance companies (GE and PMI) have policies which exclude certain areas. Some of the (mainly smaller) lenders have all of their loans mortgage insured (even on LVRs under 80%), so this restricts their lending a bit.
However major banks will usually lend for most areas at up to 80% LVR (no LMI involved), if not higher.
If you wish to check if a postcode or location is on the ‘acceptable postcode list’ of one mortgage insurer, PMI, go to their website:
http://www.pmigroup.com.au/locationWizard.asp
and you can do a search and see up to what LVR they will lend to.eg postcode 2880 (broken Hill). They will lend for loans up to $350,000 at 95% LVR, and higher amounts at reduced LVRs.
Hope this helps.
ps. Rural properties are a different ball game, the LVRs for these are generally lower depending on size, location and use etc.
Terryw
Discover Home Loans
North Sydney
[email protected]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 guys
i’ve used homepath (www.homepath.com.au) heaps and as long as the property is zoned residential you can get 80% everytime.
remember homepath are 1% below the Banks rates, no application or valuation costs and no fees, overall an excellent product but they are a pain to work with.regards westan
I have found the NAB to be pretty good with this sort of deal.
This is one area where a broker’s relationship with a Mobile Mortgage Manager really helps get the applications accross the line.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I too have had some long hunts for good regional deals and overall find NAB, CBA and a few mortgage managers we use the best sourcing lends up to 95% in small areas. The PMI and GE postcode lists are never static and often their LVR% lend will depend on the strength of the security and the applicant, rather than the straight postcode.
My tip – get a broker to do the legwork and if they don’t seem keen to, get another broker!
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Mel
[email protected]Lots of great comments there [8D] Although seems most peeps already knew about regional areas were looked on differently by lenders as to urban areas. Personally im just learning this industry so im finding out lots of good info daily especially the great information that gets posted on these forums so keep it coming people as its helping me build knowledge and probably heaps of other people as well.[
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