Join Australia's most dynamic and respected property investment community

Finance over contract value for off-the-plan properties

Discussion in 'Property Finance' started by ryau86, 30th Sep, 2015.

  1. ryau86

    ryau86 Member

    Joined:
    16th Sep, 2015
    Posts:
    12
    Location:
    Sydney
    Hi All,

    For off-the-plan property contracts which were exchanged over 1 year ago, which lenders will lend to investors according to the actual value of the property upon settlement (as opposed the usual max value as contract value)?

    Also, any ideas what LVRs these lenders willing to give to investors?

    Thank you :)
     
  2. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    863
    Location:
    Sydney (West) and Canberra
    90% Investment loans are fine, can possibly go to 95% but file would need to be very strong and pass credit scoring (CBA).

    ANZ, Macq will take OTP val price, not contract price.

    CBA can do, have had some luck in the past - although the process has duplication and is a little strange, will need to order val, send to credit and request a new val at a higher price be accepted, reorder and then accepted on exception.

    Dragon had a recent policy change, will do it at 80% for PPOR but not IP.

    Cheers,
    Redom
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,161
    Location:
    Canberra and Sydney
    ANZ all the way - think they only require 6 months

    Macquarie too - but they're more rigid if the property is in a large development in a capital city.

    ING might too from memory.

    Cheers

    Jamie
     
  4. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

    Joined:
    20th Jun, 2015
    Posts:
    171
    Location:
    Brisbane
    Had one approved last week where client was borrowing 105% of purchase price which was only around 78% of valuation.

    OTP in NSW started in 2012 and client was very happy the developer took 3 years to complete it.

    4.18% variable compared to the 4.74% we had expected at the original 90% lvr.

    Cheers


    Richard
     
  5. Marty McDonald

    Marty McDonald Mortgage broker Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    228
    Location:
    Sydney North Shore and Norther beaches
    Nab as well
     
  6. Befuddled

    Befuddled Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    251
    Location:
    Sydney
    Just settled on a CBA loan for a property bought off-the-plan nearly 2yrs ago. Valuation came back more than the purchase price (roughly 30-40k over). Bank was happy to lend 80% of the valuation.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Gold Coast
    Most, but not all lenders will do val over contract in this type of scenario with loans where lmi isnt needed.

    Better get in quick though, with the slowing market valuers will usually value AHEAD of a slowing market, but behind a growing market

    ta
    rolf
     
    Befuddled likes this.