Lending based on proposed titles

Discussion in 'Loans & Mortgage Brokers' started by Martinez22, 7th Jul, 2017.

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  1. Martinez22

    Martinez22 Well-Known Member

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    Does anyone know of any banks that still lend based on proposed titles?

    Clients have WAPC approval & council approval, but require the progress payment funds to pay off the rest of the WAPC application ( to issue the title ).

    I know bankwest & bank of queensland do, any one else?
     
    Martinez22, 7th Jul, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Are you a broker?

    What do you mean by proposed titles?
     
    Terry_w, 7th Jul, 2017
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  3. LifesGood

    LifesGood Well-Known Member

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    I'm going through ANZ at the moment and they'll go to 70% LVR if titles are not issued, 80% if titled.
     
    LifesGood, 7th Jul, 2017
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  4. tobe

    tobe Well-Known Member

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    No. Banks take a mortgage, or stamp a mortgage on a title. If the title isn't issued, then there's nothing to stamp.

    If you are subdividing, bank might already have their stamp on the original title. You can get an approval subject to the subdivision, but you can't get the funds until new titles are issued.
     
    tobe, 7th Jul, 2017
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  5. Martinez22

    Martinez22 Well-Known Member

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    Im pretty sure there are some lenders who can approve it subject to subdivision and who can release funds. Trying to worm out which ones.

    BW and Bank of Queenslnd allow it
     
    Martinez22, 8th Jul, 2017
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  6. Martinez22

    Martinez22 Well-Known Member

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    Proposed as in, they require the funds to complete the subdivision to issue the new title. So at the time of applying, its proposed subject to the bank releasing funds.

    Yes im a broker, not a fulltime one however
     
    Martinez22, 8th Jul, 2017
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  7. tobe

    tobe Well-Known Member

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    If your pretty sure then confirm with bw and boq.

    The only way I can see that happening is if the bank controls the funds and pays it directly to the sro to issue the new titles.

    I've never heard of that before, but I haven't done much lending around clients subdividing.
     
    tobe, 9th Jul, 2017
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  8. Martinez22

    Martinez22 Well-Known Member

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    I have already? I got finance approval with bankwest for proposed titles, and confirmed with the bank of queensland bdm. Im asking if anyone knows of any other lenders other than these two. With all these dam changes its hard to keep up with whose doing what
     
    Martinez22, 9th Jul, 2017
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  9. tobe

    tobe Well-Known Member

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    So do it with bw. Why do you want to change?
     
    tobe, 9th Jul, 2017
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  10. Martinez22

    Martinez22 Well-Known Member

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    Its not servicing with bw or bqld
     
    Martinez22, 10th Jul, 2017
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  11. tobe

    tobe Well-Known Member

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    Then it's screwed. Lender calculators don't vary much post apra. Liberty being about the only outlier.
     
    tobe, 10th Jul, 2017
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  12. Richard Taylor

    Richard Taylor Well-Known Member

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    What is the current lvr ?

    Could look at doing it as a Coded Nodoc Loan subject to an exit stategy or refinance post Titles.
     
    Richard Taylor, 10th Jul, 2017
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  13. Martinez22

    Martinez22 Well-Known Member

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    It works with liberty, but they don't do construction -_-
     
    Martinez22, 13th Jul, 2017
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  14. Martinez22

    Martinez22 Well-Known Member

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    Lvr based on proposed title is 58%, whats a coded nodoc loan? never heard of it, and which lenders do this?
     
    Martinez22, 13th Jul, 2017
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  15. Richard Taylor

    Richard Taylor Well-Known Member

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    Only available thru Private Lenders such ourselves.

    We would want further details before we would comment further but do a lot of deals like this.
     
    Richard Taylor, 13th Jul, 2017
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  16. Richard Taylor

    Richard Taylor Well-Known Member

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    Carried away and posted it twice by mistake
     
    Richard Taylor, 13th Jul, 2017
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  17. Martinez22

    Martinez22 Well-Known Member

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    Oh cool, I'll give you a call soon then.
    Hopefully you can help, otherwise might as well complete sub-division and then try for finance
     
    Martinez22, 14th Jul, 2017
    #17