The industry calls it Loan to VALAUTION Ratio.. so why then do the banks or lemders ignore this and go for the (LPR) purchase price??
If I can buy a property that stands a sworn valuation of $300k and I can buy it for $250k, the banks should be very happy.. Yes? …apparently not! They want to lend you say 90% of the purchase price, regardless of value!All lenders out there who want to lend on LVR.. please contact me! I have a lot of business for you..
Let’s change the name to LPR…
Apostle
Banks are conservative.
One way around this would be to pay cash, settle on the property and then immediately refinance.
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
Although Terry there a couple of lenders i can think of that actually lend against valuation from day 1.
I have just settled a deal which was an off the plan purchase and the property has gone up considerably in value (Yes i now its unusual) where the lender took the valuation figure and not the purchasr price.
Admittedly the rate of interest was a little higher but it got my client out of the hole he was in.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
There are a couple of lenders around that will go on Valuation price not purchase price, but rates can be higher.
With off the plan purchases where the contracts are over 12 months old, some lenders will go on the valuation not the purchase price.
State Manager
0425 358 293Wholesale Mortgage Lender that deals only with brokers.
20 years in Finance Industry
Kerri
See great Queensland minds think alike.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Many will also go on greater than 6 months between contract date and settlement date at the standard rates. Don’t forget advantageous purchases where this is also common.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]The real issue of course being that if you can buy the property at $250k when it is valued at $300k means the valuation is wrong and it is actually $250k. After all if you paid that much the bank has to assume that if they sell it they can only get that much as well.
The market sets the true value, not the banks or valuers.
so if I am an idiot and pay $350k does that set the true value as well?
http://www.megainvestments.com.auJohn Carroll
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