Apartment Size's

Hi everyone just a quick question as i am getting very different answer's from brokers ><.From my understanding most banks will only lend 90% with LMI if a property is above 50m2 and only 70% below 50m2 and they ignore balcony's in that measurement but what about enclosed or semi enclosed Alfresco are they included in the total size that a lender looks at??
I currently have a holding deposit down on a off the plan unit that is only 43m2 with a 9m2 Alfresco i don't wont to get into a situation were i put down my 10% deposit now and come the time in 2years on completion of the property i cant get a lender to lend at 90%.
 
You look back two years ago and consider what loans used be available to now.

A lender and a mortgage insurer can change policy overnight. Point being that they may approve 90% in principle today but in 2 years time policy will change.

So whats your contingency plan when/if they do change policy in this time or - for some reason - your valuation falls short when the place actually goes to settle?
 
No one is going to be abke to provide you with that type of guarantee.

As Spectre mentioned at the moment getting a lender to retain its policy for 2weeks is a good thing let alone 2 years.

Talk about reactive lending.
 
An OTZP approval with CBA is good for 12 mths

but I hate OTP exactly for this reason.

Often the project is supposed to be done on x and then it becomes 2 x and you are stuck with no finance when rules change

ta
rolf
 
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I have never really understood the attraction of OTP. Its quite a large risk to take, with only sometimes a stamp duty concession and perhaps the prospect of capital gains at the end. You are always buying from a developer (as opposed to sometimes a distressed O/O for established property) who will rarely if ever discount the pirchase price.
In my mind why not pay full stamp duty on a property that generates income and capital growth from day one?
I guess my view is coloured by the point in the cycle when I started broking, just as the apartement market in Melbournes docklands collapsed.
 
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