Financier policy on small blocks of units - changes to LVR

Viewing 6 posts - 1 through 6 (of 6 total)

jkcantwell
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@jkcantwell
Join Date: 2007
Post Count: 5
October 12, 2007 - 2:32 am
I recently discovered that my bank has changed its policy on lending on small blocks of units (up to three units on a single title). I own two small blocks which I want to refinance. The bank used to lend up to 90% LVR (which is how we bought them) but now classifies these types of properties as commercial and will only lend 60%. (I think this would also apply to house + flat properties too.)
Of course this is ridiculous as a three-income property at 80% is likely to be a less risky investment than a single-income property at 80% (or above), all other things being equal.
Anyone know a lender who is more generous and will still lend 70% or 80% (or more)?
Stumunro
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@stumunro
Join Date: 2006
Post Count: 49
October 12, 2007 - 3:55 am
With the tightening of lending criterior in the lo-doc tier it will be very hard to get finance for any more then 60% Definitely not with prime lenders, you could try no-doc but i don't think it would be allowed.
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
October 12, 2007 - 4:00 am
I disagree.
The credit crunch has little to do with full doc loans. You certainly would get more than 60% LVR on a 3 pack of units subject to income and valuation.
Richard Taylor | Australia's leading private lender
Alistair Perry
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@aperry
Join Date: 2004
Post Count: 891
October 12, 2007 - 8:31 am
You can definately get 90% on 3 units. Get yourself a good broker.
Regards
Alistair
Matthew Centrone
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@matthew-centrone
Join Date: 2007
Post Count: 16
October 15, 2007 - 1:03 am
You could definitely get a higher LVR than 60% if its considered a commercial lend. You could also try to value the units individually and lend against them as residential with different lenders, (longer and more expensive process, however this could mean getting up to 95% on each unit individually).
Cheers
Matt Centrone
Property Investor and Financial Strategist
[email protected]
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
October 15, 2007 - 1:50 am
Matt
Difficult if not impossible to get 3 different lenders to lend against the units when they are on a single title.
There are many reasons why you wopuld not wish to strata title the block but as Alistair mentioned a 90% loan on the 3 units on 1 title should be easily achieveable.
Richard Taylor | Australia's leading private lender