80% LVR under 3mil but only 75% over 3?

Discussion in 'Loans & Mortgage Brokers' started by 007forever, 6th Mar, 2021.

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  1. 007forever

    007forever Member

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    Hi everyone,

    Sorry if this is a rather dumb Q, but my lender told me I can get 80% LVR for property price under 3mil but max 75% for over 3mil, can I clarify if you think this means 75% for any amount *over* 3mil?

    i.e. say if a property sells for 3mil, then I can get $2.4mil loan, but if the property sells for 3.1mil, then I can only get a 3.1 x 7.5% =2.325mil loan?

    This would be rather strange...

    Thank you!

    Steve
     
  2. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Certain banks has certain LVR limits, this is mainly for luxury properties.

    Your example is right
     
    Last edited: 6th Mar, 2021
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A good reason to look at using a broker.

    There are significant variations on policy around LVRs and definitions of premium or luxury properties with most lenders

    Assuming this is for an owner occupied debt, then maybe look at a lender that offers a master limit so you can use an active debt recycling strategy to pay the loan off sooner - sometimes much sooner

    ta
    rolf
     
    Last edited: 6th Mar, 2021
  4. 007forever

    007forever Member

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    Thanks for the quick responses, Tony and Rolf.

    This is for an investment property, I was basically surprised that they'd lend me less for just 100K more in price.... I mean what's the risk for them!

    Sigh I have a certain limitation with choosing a lender, so basically stuck :( I will call my account manager up on Monday to haggle......
     
  5. 007forever

    007forever Member

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    also, I'd hardly call 3mil a luxury property nowadays... this is almost below medium for the suburb I am looking at... sigh... my FOMO moment...
     
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Not knowing your situation too much I cant comment on why you can't go to other banks.

    But there are banks that will lend at 80% for up to $3m