Help! First Home Buyer- Buying vacant lot off Vicroads. issues with CBA finance

[sparky17]

Hi there,
I am looking at buying a vacant lot off Vic Roads and I've run into two issues with CBA
I am also a first home buyer
The Offer has been accepted at $149,000 + G.S.T ($163,900)

I was hoping to front a 10% deposit ($16,390) + LMI

First of all CBA say that I cant get a loan for the GST component and i will have to pay that out if my own pocket ($14,900)
which is fine i can afford to do that

After sending the section 32 to the bank they "valued" the property and told me that because there is a High Voltage power line across the property that it is classed as a high risk loan and I would not be able to get LMI so i would have to front up 20%

Are there any other lenders out there that could either be able to give me a loan for the property with the GST Covered in the loan amount? or another lender who use a different LMI criteria?

Thanks in advance

 

[Mick C]

Environmental issues on a valuation is subject to the lender and LMI.

So it will come down to the valuation report nad if there's any positive sign to offset the High Voltage power line; so hard to say for certain which banks will accept your property at 90% LVR...however there's a few options you can consider;

1. Going with a diff bank that uses a diff LMI provider
2. A bank that has an internal LMI
3. Adelaide bank can provide a $20,000 side loan, so this might be enough to cover for GST and other cost.
4. A few banks are happy to take sale contract price only without a valuation done; however with a GST component it's also hard to say 100% for sure.
5. Using a guarantor loan to fund the remaining 10% or the total 20% even ( ie borrow 100% + GST + Stamp duty)

High Voltage power line and flooding etc is common in Australia and every property is slightly different , so the "solution" will depend on the property at hand- but the above 5 is a good starting point.


Cheers

 

[sparky17]

thanks Mick C

i might see a mortgage broker tomoro.

 

[tobe]

If the bank and the mortgage insurer doesnt like it, perhaps you whoudl think again?

Are you planning on building on this block? If so get a build contract up front, and plan on having to provide at least 20% of the build contract as well.