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  • Profile photo of LilianWALilianWA
    Member
    @lilianwa
    Join Date: 2012
    Post Count: 14

    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

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    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
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    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
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    Residential and Commercial Brokerage

    Profile photo of mbuildingmbuilding
    Participant
    @mbuilding
    Join Date: 2012
    Post Count: 28

    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

    Profile photo of LilianWALilianWA
    Member
    @lilianwa
    Join Date: 2012
    Post Count: 14

    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.

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    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
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    Residential and Commercial Brokerage

    Profile photo of LilianWALilianWA
    Member
    @lilianwa
    Join Date: 2012
    Post Count: 14

    Hi Shahin,

    Are you located in Sydney? I would like to run through a few more questions with you if that's ok?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    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 Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    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 Me

    Residential and Commercial Brokerage

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    NAB can go up to 95% LVR up to $2million from memory.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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
    https://terryw.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of HomeLoanExpertsHomeLoanExperts
    Participant
    @homeloanexperts
    Join Date: 2007
    Post Count: 43

    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.

Viewing 14 posts - 1 through 14 (of 14 total)

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