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65% LVR for IP?

Discussion in 'Property Finance' started by mini2, 29th Sep, 2016.

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  1. mini2

    mini2 Well-Known Member

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    Trying to order a val from my current lender then got told their new lending criteria (courtesy of APRA, apparently) making their IP LVR capped at 65%. Are most lenders still lending things up to 80% at the moment?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    That's really low - many are still going up to 90%
     
  3. House

    House Well-Known Member Premium Member

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    Who's the lender? Pretty sure theres a good few still doing 90%. Anything about the IP that might make it seem riskier to them?
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Which lender is this?

    95% is still possible.

    Cheers

    Jamie
     
  5. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    95% + full cap lmi is still available so theoretically can go to 99.9%.

    @mini2 which bank and why. There may be a reason in relation to security type?
     
  6. Indifference

    Indifference Well-Known Member

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    That's low... down around rural/farming zone territory. Even lower than most Commercial LVRs (typically 65-70% but can be higher in some cases).

    You are you talking about residential I assume...
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Yeah, I was talking averages :) Only Liberty doing that for IP's.
     
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  8. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    I was being an above average smarty pants haha!
     
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    :) I was also assuming it was a refi - I haven't done a cash out over 90% recently, have you?
     
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  10. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Nope, 50% of my loan book is 88% + cap :)

    I should read the OP more clearly in future.
     
  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It could be taken both ways :)
     
  12. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    95% for purchases is still do-able, 90% for refinances in most cases.

    65% LVR sounds like either specialised security OR they've been hit on the wrists for taking in an astronomical amount of new investment biz over a short period of time. Wouldn't happen to be a certain credit union who was keen on taking investment biz with strong servicing only a few months ago?
     
  13. mini2

    mini2 Well-Known Member

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    It's good old Qudos (pretending I'm a) Bank or previously known as Qantas Credit Union. I'm happy with 80% and have never expected to exceed that anyway. Their only saving grace at the moment is all my IP loans are at OO rates when everyone else slapped a premium on top.

    Then again I suspect it's the person I'm dealing rather than the bank's actual position. My previous go to person had jumped ship and work in a completely different industry(!)...will try again with another person and if they insist it's 65%, see you later folks.
     
  14. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It may be the case - they had / have a very generous calculator which would have seen them attract a lot of investor loans -bc they're small they likely have to readjust their book and the best way to do this is make themselves unattractive to investors. A 65% LVR will achieve that very nicely!
     
  15. mini2

    mini2 Well-Known Member

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    One of their generosity was IP and OO are charged at the same rate so all my IP's I have with them is still on OO rate unless I refinance.
     
  16. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    There are other lenders that will also do this, but depends on your servicing. Worst case you may just need to refi one to get the equity out. At the end of the day the rate should not be something that stops you moving foward and if it is, things are probably too tight for another IP anyways.
     
  17. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    That's who I thought it was. This has been happening for over 12 months now, if there's a lender with a niche outside of the norm of the lenders which will enable greater borrowing or lower rates, their service times go to hell and if it's investment related, they clamp down on the niche before they attract the attention of regulators.

    If it gets where you need to be for a purchase initially and there's no other option it's fine, but always keep in mind that what a lender offers today may not be available in the future. Good thing in your case is that its <80% LVR debt, so you're not up for much in lost costs should you move to an alternative lender.
     
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  18. euro73

    euro73 Well-Known Member Business Member

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    Its the banks position. Qudos are at 65% for Investment . Have been at 65% for at least @ 4-5 months. They take actuals for servicing, but so do Liberty and you can get 80% there using "actuals"
     
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  19. mini2

    mini2 Well-Known Member

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    Thank you all, looks like I'll stop pursuing Qudos and start shopping.

    Absolutely, lucky I've learned this lesson now rather than later. It's definitely a case of assuming the gravy train will keep going...well not necessarily a gravy train but complacency with dealing only with one lender I guess.

    That make sense then I guess as my last purchase was back in Feb this year at 80%.
     
  20. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    How many properties do you have with them? If you've been dealing with them direct, it would be a good idea to have your loan structure reviewed as it's quite possible they've x-colled you unless you specifically requested them not too.

    Please speak to a broker - shopping around yourself is unlikely to get you the ideal product or structure, and may give you a heap of unwanted entries on your credit file.