OTP - changing jobs

[red liverbird]

Hi all,

I got a question on an OTP purchase my mate is going through. He's already exchanged (months ago), but still won't settle for a while. Since excahnge, he's changed jobs and has been causually employed for 3 months. There was no gap betwen him starting this job (basically the same role in the same industry) and his previous full time position.

Just looking for some advice on the financing implications of this? He was planning on a 90% LVR as well, but has the capital to go with 80% if required.

Thanks,

RL

 

[Marty McDonald]

Hi all,

I got a question on an OTP purchase my mate is going through. He's already exchanged (months ago), but still won't settle for a while. Since excahnge, he's changed jobs and has been causually employed for 3 months. There was no gap betwen him starting this job (basically the same role in the same industry) and his previous full time position.

Just looking for some advice on the financing implications of this? He was planning on a 90% LVR as well, but has the capital to go with 80% if required.

Thanks,

RL

He likes to live dangerously doesn't he...may be OK but he is really limiting his lending options with the short term casual so hope there is no other issues such as borrowing capacity or valuation issues.

 

[Redom]

Risky business - as Marty as pointed out.

Citibank sound like a good place to start for new casual employment, but they have have stricter limits around LVR ratios on new strata properties (they only go to 80% if its more than 2 years old i believe).

Will likely need an exception from others (do-able, just not under normal policy guidelines), so its likely to depend on the strength of the application.

Cheers,
Redom

 

[Brady]

Ceee Beee Ayyy

 

[Jamie M]

Ceee Beee Ayyy

Yes - that's where I'd be looking.

Cheers

Jamie

 

[D.T.]

Ceee Beee Ayyy

They do absolutely everything in the world, don't they?

 

[tobe]

CBA is great until you get a short val.....

Like everyone else said, there are quite a few lenders who do short term casual employment, but this can rapidly reduce to zero lenders if other things about the deal are a little out of the box, like OTP, or a CBD postcode, or high LVR borrowings.

 

[Jamie M]

ANZ are usually ok with short term casual.

They'll also go off the valuation over purchase price (if it's higher) for OTP if contract was exchanged 6 months prior to settlement.

Cheers

Jamie

 

[Mick C]

Your frd better get a moving on his loan....once the development is finalized most OTP contracts gives you 2-3 weeks to settle, last thing your friend wants to stress over is "chasing and finding a suitable lender" DO IT NOW.

 

[Rolf Latham]

or 35 sq m palace with 2 risk ratings of 4

ta
rolf

 

[Jamie M]

Your frd better get a moving on his loan....once the development is finalized most OTP contracts gives you 2-3 weeks to settle, last thing your friend wants to stress over is "chasing and finding a suitable lender" DO IT NOW.

Yep - the buggers are ruthless too.

They will delay it for months - but when it's time to settle they won't grant a one day extension.

Sounds like it won't be settling for a while though according to OP.

Cheers

Jamie