Refinance loan in lockdown

Discussion in 'Loans & Mortgage Brokers' started by Ben43, 3rd Oct, 2021.

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  1. Ben43

    Ben43 Well-Known Member

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    Sydney
    Can anybody comment about their experience refinancing an IP loan in a lockdown state? I'm in ACT, but interested in other experiences, too, especially NSW. Are the banks doing this electronically, or do they still require a valuation at the property itself (which may be occupied and not able to receive visitors).

    Thinking of refinancing a loan and not sure if I need to wait a little.
     
  2. Chris B

    Chris B Well-Known Member

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    There are plenty of lenders that won't need a full valuation if the LVR is below 80% & it is considered a standard low-risk property.
     
  3. Ben43

    Ben43 Well-Known Member

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    Thanks Chris. How do they know it's below 80%? If I purchase the property for $365K but am now telling them it's $470K, how do they satisfy themselves that this is true? Do they just use electronic data from similar sales in area?
     
  4. Chris B

    Chris B Well-Known Member

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    They will either do an automated, desktop or kerbside valuation. If the valuation confirms your estimate is reasonable, then there is no need for a full valuation.
     
  5. Ben43

    Ben43 Well-Known Member

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    Thanks Chris, that's what I was hoping.
     
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    If valuation is the worry, most are doing kerbside or even just a desktop.

    However desktop can come back lower.
     
  7. Morgs

    Morgs Well-Known Member Business Member

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    Entire refinance process can be done electronically if it falls within certain criteria with certain lenders.
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Even if a full val is required, the valuers standing orders are to do a kerbside and to get the occupier to send pics of the inside and backyard etc - works a treat

    ta
    rolf