Meriton Vendor Finance

[hello1234]

Meriton's finance arm offers vendor finance of up to 90% of the purchase price on a 2 year fixed interest only loan - with no valuations, no LMI, no brokerage fees and no early payout penalty fees.

If we get credit checked by Meriton finance, how would it affect future lender's perception of your borrowing/credit capacity? Will it affect credit scoring? Do you think it looks dirty on your credit file?

 

[alexlee]

Shouldn't your bigger concern be whether the valuation even stacks up in 2 years?

 

[Peter_Tersteeg]

with no valuations, no LMI, no brokerage fees and no early payout penalty fees.

The no valuations part is very scary. They can sell you a property, give you the finance, and you're completely at their mercy and quite possibly paying way too much for the property.

 

[Shahin_Afarin]

Also check out the quality of meriton stock. As the saying guys if its too good to be true then?..

I would order my own private valuation before buying their stock.

 

[DaveM]

What happens after 2 years? You have to refinance I expect. What happens if at that time Meriton decide to sell off some stock for 50k under market, or people in a similar position decide to sell rather than refi at a loss? You are then 50k in negative equity for your refi.

Sounds dangerous

 

[Mick C]

We carry out Meriton refinance all the time and there are 3 common problems;

1. Property size, doesn't fit LMI requirements or most lenders requirement...a lot of studio and even some 1 bedroom on offer by Meriton are all under 40-50 sq meters ...you will find a lot of banks will want to see 20-30% deposit/equity before they can refinance.

2. Valuation falling short...very common-

3. Leaving it to the last minute and presuming bank will approve a 90% LVR loan

 

[Terry_w]

If we get credit checked by Meriton finance, how would it affect future lender's perception of your borrowing/credit capacity? Will it affect credit scoring? Do you think it looks dirty on your credit file?

It will affect you like any other loan. The debt and repayments will be factored in to serviceability if you are applying for finance with another lender for another property for example. There is also the risk of this lender being concerned about you qualifying to refinance the meriton loan within 2 years

 

[hello1234]

What happens if you can't get finance by the end of the 2-year Meriton Vendor Finance period??

 

[Mick C]

What happens if you can't get finance by the end of the 2-year Meriton Vendor Finance period??

THey jack up the rate....commercial rates.

 

[Colin Rice]

Sounds like a dangling carrot to get you in then you get whacked with the stick. Sounds ever so familiar.

Get your own valuation done as previously advised.

 

[impala67]

Meriton's finance arm offers vendor finance of up to 90% of the purchase price on a 2 year fixed interest only loan - with no valuations, no LMI, no brokerage fees and no early payout penalty fees.

If we get credit checked by Meriton finance, how would it affect future lender's perception of your borrowing/credit capacity? Will it affect credit scoring? Do you think it looks dirty on your credit file?

Look at how many brokers responded. Take heed of their advice. Red flags...due diligence.

 

[Aaron_C]

It's as pretty bad idea unless you have no choice.

 

[Gremlin]

It's as pretty bad idea unless you have no choice.

If you have no choice, I'd suggest it's a worse idea still...

 

[ZachAnSel]

Please avoid meriton vendor finance, my work mate experience huge problems. He bought 40sqm with no val. After 3 years, he refi and get lower val.

He don't have additional funds to meet lvr, LMI also not applicable. No other choice than to accept higher rates. Even now (5 years later), when he order valuation exactly same as paid price.

Imagine he lost so much opp during 5 years, higher rates, low rent, and no equity.
Lucky his salary able to help him over the years

 

[delfredo]

How is valuation done on an OTP property? Say the contract was signed 2 years ago and construction is completing in 2-3 months time. As part of the loan application process (if I were to apply today), will the lender's valuer make reference to sale contract prices of other OTP units in the same development, or only make reference to comparable sale of existing properties in that area, or a mix of both?

 

[Aaron_C]

will the lender's valuer make reference to sale contract prices of other OTP units in the same development, or only make reference to comparable sale of existing properties in that area, or a mix of both?

They will value them as a comparison to other established units in the area, not just in that complex. Basically what you paid for it 2 years ago is irrelevant and it's more like a valuation for a refinance.

 

[Terry_w]

Please avoid meriton vendor finance, my work mate experience huge problems. He bought 40sqm with no val. After 3 years, he refi and get lower val.

He don't have additional funds to meet lvr, LMI also not applicable. No other choice than to accept higher rates. Even now (5 years later), when he order valuation exactly same as paid price.

Imagine he lost so much opp during 5 years, higher rates, low rent, and no equity.
Lucky his salary able to help him over the years

This is not so much a problem with the finance, but the property. However I guess he would never have bought it except for the vendor finance.

 

[ZachAnSel]

This is not so much a problem with the finance, but the property. However I guess he would never have bought it except for the vendor finance.

You right Terry. Start with one problem and lead to another