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From: Mike .


Ways to increase my loan LVR% ??
From: Paul
Date: 07 Feb 2001
Time: 07:38:03

Would appreciate any idea's or comments on ways to try and increase my LVR % (loan to valuation ratio %) on my loans.

I am very much limited to a max of 80% because of the type of finance (No doc's) I have to use and loan insurance doesn't help.

I am buying houses at 10-20% below retail price, but the bank valuers always use the lowest figure of either the purchase price or their valuation price. So your can't win ?

Ways around it please? Some ideas:

1- Get the seller to inflate the sale price on the contract and then rebate me the same amount at settlement.

2- Have a two page contract with the inflated buy price on the first page (I am told this is all most banks require to see) And then the 2nd page of the contract has a discount for early settlement (back to my normal purchase price)

Or other ways? Any ideas or comments on the above?

Regards - Paul
 
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Kevin F

Reply: 1
From: Mike .


Re: Ways to increase my loan LVR% ??
From: Kevin F
Date: 09 Feb 2001
Time: 14:48:25

Even though the lender will use the lesser of the purchase price or the valuation, this only stands for 6 months. This means that if you buy a property for 10-20% less than the value after 6 months you can get it revalued. The lender would accept the valuation if its by one of its preferred valuers thus changing your LVR. This works with banks.

Hope this helps.

Kevin
 
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DR

Reply: 1.1
From: Mike .


Re: Ways to increase my loan LVR% ??
From: DR
Date: 07 Feb 2001
Time: 19:58:58

Hi Paul,

I am assuming that you buy your IPs in your name. If you have several IP's and have shown that you can service the debt then surely you can move over to another lender etc (Refinance).

I have some ideas to help you out on borrowing based on valuations rather than sale price so if you want to talk more send me some mail.

[email protected]

Yes, I work at the tax office, but not in auditing :)

Cheers, DR
 
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Rolf

Reply: 1.1.1
From: Mike .


Re: Ways to increase my loan LVR% ??
From: Rolf
Date: 07 Feb 2001
Time: 09:13:39

Hi Paul

Yes some lenders want it both ways. But there are lenders out there who will take the valuers value rather than the contract price, otherwise why should they even bother with the cost of a valuation at all. The no docs makes it very hard, some will go to 85, but with punishing rates.

If you are certain that you are buying 10 -20 % below market, and the valuers opinion confirms this I would be looking for an alternative lender and presenting a good business case rather than a loan application - you may already be doing this.

In regard of the other options and there are many, as a broker I try to keep my nose clean because eventually what goes around comes around.

Ta - Rolf
 
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Gabriel

Reply: 1.1.1.1
From: Mike .


Re: Ways to increase my loan LVR% ??
From: Gabriel
Date: 11 Feb 2001
Time: 07:11:45

Hi Rolf,

Can you recommend any lenders that will take the valuers value rather than the contract price?

Thanks Gabriel
 
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Rolf

Reply: 1.1.1.1.1
From: Mike .


Re: Ways to increase my loan LVR% ??
From: Rolf
Date: 11 Feb 2001
Time: 23:54:54

Hi Gabriel

most banks will, many non bank lenders that source $ through securitisation may not. Recent placement for this type of business are Westpac and Bankwest, although I am positive almost all will look at you IF your app is presented as a biz case and not a loan app.

Ta - Rolf

[email protected]
 
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