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90% LVR - which banks offer this?

Discussion in 'Property Finance' started by wylie, 29th Nov, 2015.

  1. wylie

    wylie Moderator Staff Member

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    There was mention in a thread fairly recently about some banks now allowing 90% LVR with no LMI up to that percentage... or have I dreamt that?

    I'm wondering (assuming I read it correctly) which banks this might be?
     
  2. sumterrence

    sumterrence Well-Known Member

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    I believe St George offer this to registered lawyers and accountants and doctors & Westpac extend this to executives/partners and sports & entertainment professions, and the condition is the person must earn more than $150k/pa.
     
  3. Superbird

    Superbird Member

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    Boq specialist offer this to qualified accountants
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    For certain professions it's possible.

    Generally it's for medical pros - but there are other professions that are now considered.

    85% no LMI is on offer for anyone these days.

    Cheers

    Jamie
     
  5. wylie

    wylie Moderator Staff Member

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    Thanks. I asked NAB recently for a current loan (not mine) and was told it was for doctors(?) or left handed chiropodists(?) :p.

    So engineers don't get a look in?

    Just saw your reply Jamie. I don't think NAB offered 85% (just checked my email and 90% for medical doctors - no mention of 85% - two weeks ago). I do know the person I'm enquiring for needs 90% so 85% isn't worth doing.
     
    Last edited: 29th Nov, 2015
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Mining engineers do.......................

    just shows you how silly the lenders can be

    ta

    rolf
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Nab won't.

    St George will - although the promo expires soon (couple of days I think).

    Homeloans Ltd will - and have been for a while.

    Cheers

    Jamie
     
  8. wylie

    wylie Moderator Staff Member

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    Thanks folks. Of course if bank valuation for recent reval had come in higher 80% of a realistic value would have solved the problem of not being able to completely repay a family loan.

    So the 80% rule combined with a crap valuation means we wait a bit longer to have a bank take over the family loan. I just want to tidy things up a bit.
     
  9. wylie

    wylie Moderator Staff Member

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    What sort of rates are those banks offering Jamie? Loan $575k.
     
  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    St George are competitive - Homeloans Ltd not as low.....but even if the rate wasn't too crash hot - an 85% lend at $575k is going to cost a fair bit in LMI.....so that savings alone will justify a higher rate. When you get the LVR down to 80% you could reassess your options.

    Cheers

    Jamie
     
  11. wylie

    wylie Moderator Staff Member

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    Thanks Jamie. It is a loan owed to me from a family member. No drama that he takes longer to refinance, but would be nice to just tidy a few things up.

    We can wait until we get a more realistic valuation and his income increases.
     
  12. wylie

    wylie Moderator Staff Member

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    Just calculated that IO @ 90% would be all he needs if it values up by just another $10k. Would those banks look at IO? He has been meeting payments for 18 months now so has a good P&I history.
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Sometimes a CBA AVM can be like 90% no LMI - always worth a shot. ;)
     
  14. Art Vandelay

    Art Vandelay Well-Known Member

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    How many valuations have you sought? Could it be worth shopping around to get the valuation you need?
     
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  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I was just about to suggest this too.

    @wylie might be worth talking directly to one of the brokers on here (or get the family member to) and look at an upfront valuation etc to see if you can get the valuation up and solve the problem.
     
  16. wylie

    wylie Moderator Staff Member

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    Thanks Art and Westminster. I did run it past a broker, who asked me who did the valuation. It seemed another valuation would go through this "central" valuation hub for the bank he had in mind (unsure how to word that properly).

    We can wait another few months when next valuation (and his income) should both be higher.
     
  17. Redom

    Redom Mortgage Broker Business Member

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    St George aren't doing the 85% no LMI offer anymore i don't think (31st Oct expiry?). Also Homeloans 85% no LMI waiver can't be I/O anymore, and it is quite expensive. Well past 5%, which is quite dear given the market.
     
  18. wylie

    wylie Moderator Staff Member

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    Thanks to all who answered. I think we just wait another six months to allow valuation (and salary) to creep up a bit higher.
     
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  19. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    If the deal is above $500k then the LMI is going to be costly .....so higher rate (at least until the property gets 5% growth) should be worth it.
     
  20. Redom

    Redom Mortgage Broker Business Member

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    Pretty hard product to sell now i think, i wrote a dozen or so of these a couple months ago, but since the recent policy/product change, its a niche product thats a bit harder to sell.

    Needs to be P/I. So its mainly for O/O debt now. Homeloans P/I Pepper Funded product at 5.19%. Thats almost a full percentage point above market for that type of deal, plus about $1000 in fees.

    LMI for a 500k purchase at an 85% LVR is about 4.5k. Plus cash-back offers from other funders like NAB/St George, etc, the maths doesn't quite work out. You'll have made that in 6-12 months.

    At its maximum loan size of $1mil it may make sense though. Although whether you'd want to go there unless you need to is debatable.