We have a number of facilities across a few banks, one of which we have at 90% LVR for our acquisition/construction projects. With CBA though, the most we can get is 80% LVR for our acquisition/construction projects. Is there a way to go above this with CBA? Thanks Al
I guess the question is why there is an 80 % limit ? Usually it is security related or foreign income related ta rolf
@Rolf Latham , that's fair enough however does CBA go above 80% for acquisition/construction projects? If so and in your experience, what criteria have you seen to make it happen?
typically, but not always............ a poor in house credit score Low serviceability more than 2 dwellings being built Little or no gen savings A security location they dont like Aggregate lending at > 80 of 1 mill and above - goes to genworth and may not be approved Small units and a snip and past from CBA credit site All company title units Company share title Stratum title Dual key access All serviced apartments Commercial property Any type of residential property that also supports a commercial facility/loan Crown land/perpetual leasehold (other than ACT) Mobile or temporary homes Relocatable homes Properties under the National Rental Affordability Scheme (NRAS) Cash Land/home size greater than 50 hectares Vacant land size greater than 11 hectares Living area size less than 40 square metres Transmission lines distance less than 50 metres from the nearest boundary Any property that is not 100% used for residential purposes Any property where security includes a second mortgage (unless the first mortgage is Defence Housing Loans or Colonial State Bank) Property located on an island with no sealed road connection to mainland Property situated on Norfolk Island ta rolf
Over their DUA limit with CBA? Insurers are certainly causing havoc with deals a lot more than previous, especially with most of the higher servicing lenders not having their own authority to approve insured deals without sending them to LMI for their own approval. There are some lenders which have their internal risk fees akin to LMI but without the additional layer of assessment and borrowing capacity calculations which are gaining popularity - this will likely be a space where we'll see more competition as commercially minded lenders realise there is market share for the taking.
