Westpac LMI: 95% LVR with existing Land loan

Discussion in 'Loans & Mortgage Brokers' started by AlexFHB, 25th Jan, 2017.

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  1. AlexFHB

    AlexFHB Member

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    Hi All :)

    We are in the process of doing our construction loan and refinance of Land with Westpac.

    Our LVR is sitting at around 94-95% and we will have capped LMI included. I was just interested as to what factors will cause a decline of this app.

    To share some insight we had a full val done upfront and came back fine and have a clear credit history. Any insight will be great.
     
    AlexFHB, 25th Jan, 2017
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    WBC are capping total LVR at 95% so if your base is at 94% adding LMI will go over and be outside policy for them.

    If they've declined there may be other options for you with other lenders.
     
    Jess Peletier, 25th Jan, 2017
    #2
  3. Tom Simpson

    Tom Simpson Well-Known Member

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    Did you use broker or go straight to the bank?

    There are at least 2 or 3 main stream lenders that I can think off hand who will lend to 95% plus full cap of MI.

    It's doubtful this would have been the reason for the decline however, whoever was looking at your numbers likely would have factored this in already. If that were the case Wpac wouldn't have declined they more than likely would have come back to you with a lower lend value and requested you to tip in more cash.

    Your best bet is to speak to a broker because there's too many variables that could have caused the decline.
     
    Tom Simpson, 25th Jan, 2017
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    why worry about whats not going to happen ?

    The LVR at 95 inc lmi will be fine, you have a plat broker doing the deal........................

    ta
    rolf
     
    Rolf Latham, 26th Jan, 2017
    #4
  5. AlexFHB

    AlexFHB Member

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    Hi everyone,

    just to clarify...

    The loan app hasn't been declined but we are nervous about it naturally as we have had many issues in the past.

    Are there any reasons LMI is declined considering we both have a clean credit history and have already had a land loan for nearly 12 months now :)

    thanks
     
    AlexFHB, 30th Jan, 2017
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    piece of string I guess...........

    challenge is that you are asking the wrong peops with the least amount of specific data

    if the loan was previously approved 12mths ago with LMI and your circustances have adversely changed, and your acct conduct is good it will be fine.

    ta
    rolf
     
    Rolf Latham, 30th Jan, 2017
    #6
  7. Corey Batt

    Corey Batt Well-Known Member

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    Kind of like asking medical questions to random people on the internet - you're not going to get an accurate response.

    Overall though, if there have been no adverse changes to your circumstances and you've been previously approved for the initial loan, I wouldn't fret.
     
    Corey Batt, 30th Jan, 2017
    #7