>70%LVR on rural property?

Are there any lenders that will lend above 70% LVR on a rural property? We also need them to assess on property value rather than contract price as we are buying the property at a price much lower than the valuation. We are currently doing an application with ANZ and they are able to use the valuation price but not above 70%

Any ideas?

Thanks
 
It is in Central Victoria, around 50 acres, the bank said on the valuation it was residential rural. It already has a house on it but is not connected to services (other than telephone - tank water, bottle gas, off grid solar power). The whole block is bush so no use other than living on it.
 
It is in Central Victoria, around 50 acres, the bank said on the valuation it was residential rural. It already has a house on it but is not connected to services (other than telephone - tank water, bottle gas, off grid solar power). The whole block is bush so no use other than living on it.

You can possibly get 80% - but this is a non-arms length transaction right? Who have you talked to apart from ANZ?
 
You can possibly get 80% - but this is a non-arms length transaction right? Who have you talked to apart from ANZ?


Yes it is. I have spoken to CBA and NAB and they weren't very helpful. I don't really know where else to look at the moment. Am currently stuck at home on my own with kids, there is not much where I live now to go and talk to anybody and even phone calls are a mission during the day!

At this stage I am thinking I am best to stick with ANZ as I know they will most likely approve it up to the 70% and then look at the possibility of refinancing after we take over the property, just to remove the the complications of the different values and the buying from family situation. Just thought I'd put it out there if anyone had any suggestions as it would be handy to have a bit of money left over to do a few things right away when we move there.
 
ANZ isnt the best for rural. The best is Westpac and second CBA. Why did you find CBA unhelpful? What did they say? Also are you relying on the rental income of the property for servicing?
 
ANZ isnt the best for rural. The best is Westpac and second CBA. Why did you find CBA unhelpful? What did they say? Also are you relying on the rental income of the property for servicing?

The amount that CBA said we are able to borrow was much less than what ANZ has said they will lend us and wouldn't be enough for the purchase. No rental income, we will be living in the property.
 
The amount that CBA said we are able to borrow was much less than what ANZ has said they will lend us and wouldn't be enough for the purchase. No rental income, we will be living in the property.

Munchkin,

There are other rural lenders who specialise in these type of securities and they do lend up to 80%. Apparently CBA/WBC do lend up to 80% as well but it all depends. Maybe they were not happy with your serviceability or income levels.
 
Are there any lenders that will lend above 70% LVR on a rural property? We also need them to assess on property value rather than contract price as we are buying the property at a price much lower than the valuation. We are currently doing an application with ANZ and they are able to use the valuation price but not above 70%

Any ideas?

Thanks

Hi Munchkin

Unless you are buying from a relo, and there is a favourable sale, almost all lenders will take val or contract, whichever is the lower.

Up to 150 acres with a house and on serviced land that is NON INCOME producing MAY get through with an 80 %, but I suspect you are needing higher than that based on contract.

Case by case, depending on the property use and a few other things, a bigger prop may also be acceptable

We have put away a PPOR 400 ac hobby farm with ANZ at 80 % lvr............ been a while though

ta
frolf


ta
rolf
 
Munchkin,

There are other rural lenders who specialise in these type of securities and they do lend up to 80%. Apparently CBA/WBC do lend up to 80% as well but it all depends. Maybe they were not happy with your serviceability or income levels.

Yes according to CBA our borrowing power was about 80K less than what we had been approved for at ANZ.

ANZ will happily lend us 90% of any other property (a lot more money than we need to borrow for this one) but it's just the rural thing that is the problem. I didn't ask CBA specifically about rural properties as I already knew they couldn't lend us the amount we need.
 
Hi Munchkin

Unless you are buying from a relo, and there is a favourable sale, almost all lenders will take val or contract, whichever is the lower.

Up to 150 acres with a house and on serviced land that is NON INCOME producing MAY get through with an 80 %, but I suspect you are needing higher than that based on contract.

Case by case, depending on the property use and a few other things, a bigger prop may also be acceptable

We have put away a PPOR 400 ac hobby farm with ANZ at 80 % lvr............ been a while though

ta
frolf


ta
rolf

We are buying from my brother, the valuation is 60K higher than the contract price

ETA: It is around 50 acres. We don't need any higher than 80%, even 75% would be fine (of valuation price). If they were to go by contract price we would need 90% and I don't think we have a chance of that anywhere.
 
Trick for favourable purchases as follows:

Change contract price to the same as market value and get your relo to give you a stat dec that they are gifting you the $60k which is a non repayable gift at settlement. The $60k never actually changes hands.

If tha does t work with ANZ I would try nab as their servicing is generally good.
 
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We are buying from my brother, the valuation is 60K higher than the contract price

ETA: It is around 50 acres. We don't need any higher than 80%, even 75% would be fine (of valuation price). If they were to go by contract price we would need 90% and I don't think we have a chance of that anywhere.

NAB rural lifestyle loan

ta
rolf
 
Trick for favourable purchases as follows:

Change contract price to the same as market value and get your relo to give you a stat dec that they are gifting you the $60k which is a non repayable gift at settlement. The $60k never actually changes hands.

If tha does t work with ANZ I would try nab as their servicing is generally good.

I did have that suggested to me actually. I don't need to bother with it for ANZ as they will lend based on the valuation price, but they won't go over 70% which leaves us about 10K short. Same issue with NAB
 
I just noticed this in the small print on the NAB Rural Lifestyle Loan page

Rural property refers to properties which are located further than 50km away from a provincial city (population greater than 20,000) or more than 20km away from a primary regional town (population greater than 10,000); are greater than 10 hectares; and do not generate more than $20,000 income

It's not more than 50km away from a city so would it still count anyway?
 
I did have that suggested to me actually. I don't need to bother with it for ANZ as they will lend based on the valuation price, but they won't go over 70% which leaves us about 10K short. Same issue with NAB

Ah ok sorry thought it was the favourable purchase that was limiting the lvr.
 
And have to pay higher Stamp Duty. ;)

Yeah I don't really mind too much about that. We are being given almost 20% of the property for nothing so I wouldn't care too much if I had to pay the extra $3K stamp duty especially if it meant actually being able to borrow more by using that price.

Thank you all for the advice and pms. Having mainly participated in parenting forums previously it's a nice change to post somewhere that is actually helpful, rather than just full of hormonal and judgmental women :p
 
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