95% finance

Hi All,

I just recently sold my property, as we were having real trouble re-financing it to fund the purchase of our next property (1 bedroom unit just under 50sqm).

With the sale now complete we plan to purchase a property under $550,000
and would like to finance at 95%.

Is this still possible, I heard with Westpac if you are a existing customer you can still lend to 97%?

Are there any other options of lenders?
Due to to sale of the unit I now have good servicibility so should be no problem there with good credit history. Also location of purchase will be within 10-12km of Melbourne.

Regards,
Peter
 
There a couple of non-bank lenders that will currently lend to 95%. Australian First Mortgage also has an offset account and a competitive interest rate. NAB has also recently introduced a 95% lend but lending policy is very tight. There is also Collins Securities but interest rates are on the high side and their policies are also very tight.

As usual with most lenders <50 sq meters may be an issue particularly with the high LVR's that you are chasing.

Cheers Greg
 
Hi Peter

Apart from selling one property to buy another, do you have any actual Savings or equity in another property?

Not all lenders will take equity as demonstration of a stable financial position, some still want to see Genuine Savings as well.

If you have surplus funds from the sale then these may qualify depending on the time you have held the funds.

It also depends on which other lenders you may have credit or mortgage facilities with, so the answer is not as straightforward as 'which lender will lend to 95%LVR' - rather, the question is 'which lender will lend me 95%LVR', and so, of course, it comes down to you and to your own particular circumstances.

But, yes, there are still plenty of high level lends and a lender may take your new, wholly owned flat as collateral security for the new home, so you may be able to borrow to 105% for the new purchase, depending on structuring

Hope this helps

Kristine
 
Hiya

WBC at 95 Plus wont be easy even as an exist cliet u may get booted by the scoring. VERY VERY important to set the electronic appln up with the max chance of getting through, ie, ist good to know some of the metrics used in the scoring besides the obvious...............but there are max loan limits at WBC too at those LVRS, and a 550 purchase at 95 wont fly.


Homeside, same story on the scoring, loan limit would sit ok

NAB direct a bit more logical on the scoring, loan limit would be ok, we got an 800 k deal through the other week at 95

St George is an option if you have a ST George savings acct ?

Suncorp might work too

Then there are another 6 or so smaller lenders that may look at it

tarolf
 
Hi All,

Thanks for your replies.

Yes I agree I think WBC have a 95% LVR limit to 450K now.

So other lenders might need to be a option, I was a bit concerned as I was not an existing customer.

I dont have a st george savings account however,

We have $26,000 geniune savings, and the rest of the deposit from the proceeds of the sale.

Regards,
Peter
 
Assuming all things being equal in regards to income etc then certainly someone like NAB would be a good fit.

Not sure if they will take the deal direct as this may only be available through the 4 Star + brokers.

Other disadvantage is that they may insist the loan is P & I even though the property is for investment (appreciate in this case it is not).

Had a couple of clients this week alone we did 95% with NAB on investment and both where happy to go the P & I route but doesnt suit everybody.
 
Am i reading that right the new property is just under 50m2??.If so i was under the impression that most lenders would only go 70% LVR at the moment.
 
Hi all,

New property purchase would be over 50sqm. So at the moment first choice looks to be nab as long as my servicibility fits.

Thanks all for ur comments

Peter
 
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