They haven't increased rates on IP loans yet.....they will once they fix their IT systems according to the financial review. LVR capped at 80% if the security used is non-owner occupied. Normal LVR policy applies if at least one security is owner occupied. Been some changes to servicing calc too (but they were never a "generous" lender) Cheers Jamie
So they're not lending anything more than 80% even with LMI ? I'm currently with Stg and will have property settled in 3-4 months time.
Jamie's pretty much summed it up - the LVR cap and minor serviceability downgrade puts them even further into the waste paper basket in our office.
I heard that STG is also accepting current valuation for off the plan property instead of purchase price. Is this correct ? If so, would they take the extra equity as additional 10% to meet the 20% requirement ?
Relying on an OTP increase in val to meet LVR requirements - talk about a gamble. Dependent on contract date, if settlement is far enough away it can be considered at valuation instead of purchase price.
For the OTP purchase, for banks to take current valuation rather than contract price, it needs at least 12 months before the settlement. Say, A purchased and signed the contract for a OTP, waiting to be built and settled in 12 months time. A bank will take the valuation price rather than contract price when the property comes to settlement in 12 months time. I know ANZ accepts min. 6 months. Price between contract date and settlement date. Not 100% sure if it is still the case. I need to double check.
otp purchased in 2013. Will be settled in 2016. It's over 2.5 years and I know price has gone up significantly. This not gambling. The purchased price in 2013 is significantly cheaper than established property current selling or recently sold . So Just want to know whether they accept it or not. Don't want to pay lmi if indont have to Thx
'They' being who exactly? Every bank will do a val, they would prefer to use the lower of the two, val and purchase price. Some lenders have exceptions to this rule.
They as in the lender. If they don't then that's fine! I Just don't want to use my equity in my offset if i don't have to.
Yeh they have some policy that they can value an OTP property up to 17 months before settlement and have the loan formalised potentially even before construction started but you need to provide all the specs, plans etc for the development. I think the rate you needed to pay was at their SVR.I dont know if they still do it and not a 100% sure what the process is as I have never done one.
Looks like they still have it. Also, STG restrict a lot of developments so it would be worthwhile to have the banker/broker check that it is isn't on the security development register (restricted properties). Process 2 - Where it will be greater than 3 months for construction to be completed (estimated completion date verified as per valuation commentary). Lender · only available for “standard variable” LIS product (not available via Portfolio Loans or discounted products / advantage pack / Fixed rate loans.) · Must select ‘off the plan’ on the “Details” tab in clas. The details tab can be found by in the property icon. · Must select “Extended settlement – strata” purpose (in clas/LIS when setting up the loan) · settlement is to occur within 17 months of approval/disclosure date · All Off the Plan proposals with an LVR above 90% are outside of open policy and require referral to MCT for consideration.
