Apartment lending in melbourne 95% LVR??

[rjdee1]

Hi all,

I hoping someone can point me in the right direction/give me further info on the current lending restrictions on buying apartments in Melbourne CBD/surrounding suburbs. I have a 30k deposit + FHOG and sufficient income to service a loan, hoping to buy around the 400k or less mark (pref around 370k). I am hoping to find a two bedroom somewhere around inner Melbourne/CBD. Can someone please let me know what postcode lenders struggle to approve finance on, what lenders are the best for small apartment lending (e.g do they take the car parks/balconies into account and does it have to be 50m2 or is there room to move), what lenders are the best for 95-97% (I bank with CBA), and any other info you may have surrounding this!

Thanks,

Bec

 

[Kristine..]

Hello Bec

Welcome to the Forum

50msq will give you the greatest choice of lenders - that's not less than 50msq if internal, residential space. The space cannot include balconies or car spaces. If you can buy >50msq then there are at least three lenders which will go to 95%LVR

If you are under that benchmark, even by a half square metre, your options drop dramatically

Two bedrooms will generally mean that the floor area is compliant. It would be a real squeeze to fit 2 x bedrooms plus bathroom plus living into a smaller space. Yes, I am sure someone has managed to do it

It doesn't matter where you save, and some of the restrictions which applied earlier in the GFC - eg, only existing credit customers could borrow above whatever threshold was applicable on the day - have now been forgotten.

Regarding postcodes, Westpac has a 'buildings' list, and there can be restrictions for investors in some areas of Docklands or St Kilda Road, but generally if you are buying for owner occupation, and at your price point, you shouldn't have any problems.

Good luck with your search, hope you find something quite delightful not too many Saturdays into the future!

Cheers
Kristine

 

[BuildingBlocks]

I think that you should find a finance broker to clear up what you are able to borrow and from whom, it sounds a though you are guessing a few things.

They don't charge you any fee, as their money comes from whichever company they refer you to use, so you don't really have much to lose as they will do the research for you.

 

[Mick C]

Hi,

adding on from Kristine's post...

1. If it's in Mel CBD ( postcode of 3000-3003) and it's in a high rise apartment ( more then 40 units) then 95%, is not possible for FHOG, might be do-able with Investors...but if this is your 1st property lenders wont touch it at such an high LVR.

Max LVR for FHOG is preferred at 80%, some smaller lenders will do it at 85% ( self insured policy)

2. As Kristine mentioned Westpac has a list of MAX lVR in term of 'buildings' list" - post up the address of the place and i can look it up for you ...but i have a feeling your purchasing a massive apartment and the LVR would be under 80

3. In term of size - a few lenders will include balcony and car space; as long as the "Internal" is larger then 40 squ


4. I normally don't like to self-promote, but if you read a bit more here on our site; it will give you a better understand about small units-
http://www.shapehomeloans.com.au/loans-for-studio-apartment

***Lastly- here is a standard calculator for the location MAX LVR - http://www.genworth.com.au/lender-resource-centre/tools-and-resources/location-guide-australia/

*** Note; the above is only a "standard calculator " it's common for VERY strong deals to go over the printed LVR set, especially for investors.

Regards
Michael

 

[Peter_Tersteeg]

There are lenders who do not restrict their borrowing policy based on postcode, so it is possible to get a 95% LVR in the Melbourne CBD.

There are other factors that come into it however, such as how exposed the lender is to that particular development (they'll only lend against a certain number of appartments in that building).

If lenders want to, they can find a reason to reject a loan, so I'd avoid a 95% LVR in the CBD if possible.

 

[Rolf Latham]

Hiya

I recall at least CBA isnt overly fussy if the savings are ok.

Any lender that uses QBE wont like it a mentioned already due to them thinking its high density

ta
rolf

 

[Marty McDonald]

As long as over 40m2 it can be done under cba open policy so no postcode restrictions or high rise restrictions.

 

[Bradsdad]

As long as over 40m2 it can be done under cba open policy so no postcode restrictions or high rise restrictions.

Unless things have changed, the CBA have a black list so always best to check the property location before getting too excited.

 

[Marty McDonald]

Never heard of that Bradsdad I think you mean westpac?

 

[Bradsdad]

Never heard of that Bradsdad I think you mean westpac?

NUP, hence me typing CBA. I haven't had to run one past them for quite a while but I managed to find a couple of black spots.

 

[Wunderbar]

95% LVR on a high rise sounds difficult. Only possible if you have other securities but since you're a FHO then you won't obviously. We managed to get 100% LVR for our high rise apartment using bank bills.

 

[Marty McDonald]

NUP, hence me typing CBA. I haven't had to run one past them for quite a while but I managed to find a couple of black spots.

If you could list those black spots that would be very helpful Bd. I don't doubt you but have never come accross this with CBA was this pre their no postcode restriction days circa 2006.

 

[Melbournian]

Hi all,

I hoping someone can point me in the right direction/give me further info on the current lending restrictions on buying apartments in Melbourne CBD/surrounding suburbs. I have a 30k deposit + FHOG and sufficient income to service a loan, hoping to buy around the 400k or less mark (pref around 370k). I am hoping to find a two bedroom somewhere around inner Melbourne/CBD. Can someone please let me know what postcode lenders struggle to approve finance on, what lenders are the best for small apartment lending (e.g do they take the car parks/balconies into account and does it have to be 50m2 or is there room to move), what lenders are the best for 95-97% (I bank with CBA), and any other info you may have surrounding this!

Thanks,

Bec

if you intend to buy 370-400K for a 2 bedroom in fringe inner city (5-10km radius) or CBD - it is going to be quite difficult - that price range would be more in the 460-600K depending on location, size, views etc.

I personally wouldn't go for anything above 65 sqm for a 2 bedroom - a 50sqm is a pigeon hole that would only make it difficult to have increase rents and also it is extremely small. Size matters as oppose to how new the building is like the newer ones advertised as you can obviously renovate to improve for a fraction of the price as oppose but you can renovate to increase space. When the valuers come to value your apartment. the 1st 3 questions they will ask is how big internally is your apartment.

Obviously - views, location and building type play a part in the price however - if you going to buy something 95% leverage for a 2 bedroom for around 50sqm - wouldn't do it - better to leave the money in the Term Deposit.

 

[rjdee1]

Thanks guys, really appreciate such a high number of responses! I have much more insight now because of this! Cheers, Bec

 

[Focus]

Just done a very similar property and achieved 95 LVR plus cap with a small credit union based here in Perth but every property is different! Try and find a good mortgage broker with a large lender base!

 

[Peter_Tersteeg]

If you could list those black spots that would be very helpful Bd. I don't doubt you but have never come accross this with CBA was this pre their no postcode restriction days circa 2006.

I second this. I'm very much aware of the Westpac black list but I've never heard of the CBA equivalent. They've always advertised that they'll lend in any postcode.

CBA do try to limit their exposure to 25% of the units in a particular development. Could this be what Bradsdad is refering too?

 

[Electro]

I second this. I'm very much aware of the Westpac black list but I've never heard of the CBA equivalent. They've always advertised that they'll lend in any postcode.

CBA do try to limit their exposure to 25% of the units in a particular development. Could this be what Bradsdad is refering too?

Do NAB have a blacklist?

 

[Bradsdad]

I second this. I'm very much aware of the Westpac black list but I've never heard of the CBA equivalent. They've always advertised that they'll lend in any postcode.

CBA do try to limit their exposure to 25% of the units in a particular development. Could this be what Bradsdad is refering too?

Yes, that's correct.