Can you get LMI on a purchase if the bathroom is in a state of disrepair?

Discussion in 'Loans & Mortgage Brokers' started by mja, 6th Oct, 2015.

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  1. mja

    mja Well-Known Member

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    Would it be possible to obtain 90% LVR if the bathroom isn't really in a usable state? A picture paints a thousands words, see attached.
     

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    mja, 6th Oct, 2015
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  2. wylie

    wylie Moderator Staff Member

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    Our son couldn't get any sort of loan after he ripped out his bathroom. Maybe you can get a loan through if they don't do an "on site" inspection.
     
    wylie, 6th Oct, 2015
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Nope, do a Contract Of Sale loan.
     
    D.T., 6th Oct, 2015
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  4. mja

    mja Well-Known Member

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    Thanks D.T., can you elaborate?
     
    mja, 6th Oct, 2015
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  5. mja

    mja Well-Known Member

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    LMI requires a full inspection, which is a valuer looking through the property. It sounds like I need to only go to 80% LVR and have the lender only do a desktop val/kerbside val....
     
    mja, 6th Oct, 2015
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    D.T., 6th Oct, 2015
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  7. Johann_

    Johann_ Well-Known Member

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    Not really there are a couple of lenders out there who can do 90% loans with no inspection needed and they just got of the COS.

    Refinance different story!!
     
    Johann_, 6th Oct, 2015
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  8. mja

    mja Well-Known Member

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    o_O

    Interesting! Is ANZ one of them?
     
    mja, 6th Oct, 2015
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  9. tobe

    tobe Well-Known Member

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    Legally you need to disclose what's going on, rather than just pick a lender that gives discretion to use the contract or a kerbside val etc.


    Many lenders and LMI providers are fine with a crappy bathroom, as long as you have a plan and the cash to make it liveable (saleable).
     
    tobe, 6th Oct, 2015
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  10. Johann_

    Johann_ Well-Known Member

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    Possibly :)

    With the bathroom, i had a case where the inspector advised that it would cost 10K to fix... because the customer had cash in the bank the took this into consideration and got approved.
     
    Johann_, 6th Oct, 2015
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  11. Corey Batt

    Corey Batt Well-Known Member

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    COS/AVM for these kinds of deals.

    Else you can run with a full val with notes, quotes and cash available to complete - this is still at the assessor/LMI discretion to approve.
     
    Corey Batt, 6th Oct, 2015
    #11
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