Deposit for land only.

Discussion in 'Property Finance' started by Bhp19, 21st May, 2015.

  1. Bhp19

    Bhp19 Member

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    One for the brokers on here.

    After having move from Melbourne to regional Qld in 2011 for work, we are planning to move back to Vic in a couple of years and are considering the idea of buying a block of land for our future PPOR, but would like to know what percentage deposit would be required for land only at the moment? Would LMI be applicable if we used less than 20% for the deposit?

    Thanks.
     
  2. Rolf Latham

    Rolf Latham Member

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    yes typically 20 % would be needed to get around LMI

    ta
    rolf
     
  3. Corey Batt

    Corey Batt Finance Broker

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    LMI for <20% deposit if you don't have a waiver, 95% LVR max on vacant land deals - depending on the lender.
     
  4. Bhp19

    Bhp19 Member

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    Ok, thanks for the replies, we should be able to make 20% deposit.....maybe, Mornington Peninsula hinterland can get pretty exxy!
    Out of curiosity though, what is the waiver you've mentioned Corey?
     
  5. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    Whats are your occupations?
     
  6. Bhp19

    Bhp19 Member

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    I'm an Operations Technician (Production Operator) although have only been in this position for 10 months, I was previously an Electrical & Instrumentation Maintenance Technician and my wife has only just began working again as an aged care worker, although this is a casual position.
    Does that have something to do with the waiver previously mentioned?
     
  7. tobe

    tobe Mortgage Broker

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    some lenders waive LMI up to 90% for certain professions. There are a couple of lenders who waive LMI to 85% for everyone, subject to a few conditions.
     
  8. Bhp19

    Bhp19 Member

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    Thanks Tobe, I'd assume the waiver is mainly for doctors, lawyers etc.?
     
  9. tobe

    tobe Mortgage Broker

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    and accountants. The waiver to 85% is for anyone.
     
  10. Corey Batt

    Corey Batt Finance Broker

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    Engineers, sports persons, all sorts. There are a few specific conditions inc minimum income levels for the person in question - but it is a lot more expanded than the medico field.

    As Tobe has said, there are 85% LVR no LMI options too.
     
  11. Bhp19

    Bhp19 Member

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    Great, thanks for all of your replies.