Just wondering if anyone knows much about how St George operates. We have a loan with them of LVR 90% on an investment property. It settled two months ago. We want to use our equity to help purchase a PPOR but i am unsure as to how long i have to wait before St George will let me use it. I rang them one month after settlement to see if we can use it but at that time they said no. Since buying our unit, the prices have gone up atleast $10000-$20000. As well the mortgage insurers wouldnt insure the unit for more then 90%, so if we use our equity to buy another place is the LVR calculated for just the new place or is it an average of the place holding the equity and the new place.
SGB are usually 6 months like most of the majors but in saying that i have just had one approved in 4 months.
Remember SGB self insure so the LMI problem is only limited to them and them alone. Your MB should have pointed this out to you before recommending them. Most lender will go to 95% with the big 2 MI's.
Richard Taylor | Australia's leading private lender
If after 4-6 months they allow us to use the equity, can i access the equity in any way to pay for purchase costs of another property which we would get finance for through a different lender.
Regretfully not. At that level you wont get any lender take a 2nd mortgage unless they do it as a personal loan.
Richard Taylor | Australia's leading private lender
Hi Breammaster,
Have you done any work on the property after settlement? If you have you should be able to have it re-valued higher, but may need to provide some details on what you have had done to the property. If you haven't had any work done it is still possible – during the height of the WA property boom we had a property valued 20% higher after 3 months with no work done, but it is far less likely as the main comparable used by the valuer will be the actual purchase price.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044We havent done anything to the property but looking at what has sold in the past two months in the same building, it has risen between $10000-$20000
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