Problems with getting loc doc loan for properties > $1m in WA?

[redbox]

Would like to explore a situation and get other people's experiences. My friend is looking around for properties just over $1m in WA and has had problems with lenders having either a $500K or $1m cap for properties in WA.

Has anyone else had any experience this is and if so, how you solved the issue? I think it is crazy that where property is creeping up each year, there is a cap. How do people buy $1m+ properties with this problem?? BTW, she needs a low doc product.

 

[Kristine..]

Hi redbox

What LVR is your friend looking for?

If she is wanting 80%LVR on a Low Doc - and assuming you are talking about an established standard residential property - then somewhere between $750,000 and $1,000,000 is about it for most lenders in a single loan against a single security.

If she is looking for up to 60%LVR, then at least one of the majors will go to $2,500,000 in a single loan against a single security.

Don't forget that loans require appropriate security. If the house is anything but 'standard residential' ie on small acreage, out of town a bit, etc then the risk to the lender is higher than if it is a family home in an upmarket suburb where million dollar sales are reasonably common.

So if your friend has plenty of cash in the box under the bed and the security is appropriate, she should have no trouble in getting a loan whether full doc or low doc.

By the way, this presupposes that she has had an ABN registered for two years and GST registration at least at time of making the application. Quite a few lenders are now requiring 3 months GST registration at time of making the application.

If she is simply going to be 'stating' income or 'stating' that she is self employed, her choice of lender shrinks rapidly.

Horses for courses. One million dollars is not the hurdle - as always it is the whole situation which requires assessment.

Cheers

Kristine

 

[redbox]

Hi Kristine

Thanks for your post! She is definitely needing to go low doc and is looking for at least 85% LVR. She is looking for houses around South Perth, Kensington, Como etc which are all suburbs where there are plenty of $1m+ houses. It is just a normal residential house (so not on a large acerage of land).


ABN & GST registration shouldnt be a problem.

And she doesnt want to put in a large deposit.

Hope there are some options out there!

 

[Olback]

Bluestone will do up to 90% LVR on some products, capped at $500,000 though.

Westpac will do $1.5 million at 60% LVR.

The reason why this is done is to reduce the banks risk.

I hope that helps.

 

[Qlds007]

GMAC will do 95% to $500K, 90% to $1M or 85% to $1.5M

 

[Welcome]

Check out mortgage ezy. From memory have a $1.25m up to 90% or a jumbo lo doc up to $5m with max LVR of 70% (think rate was 8.8-8.9% for later).

 

[redbox]

Thanks All!! i have passed on this information to her

 

[MTR]

Welcome
have you actually used morgage ezy?

Thanks

 

[Welcome]

Welcome
have you actually used morgage ezy?

Thanks

Nope. Was ready to get lite-doc finance through them however MB thinks that he will be able to squeeze me through a normal full-doc. But if that fails I will probably use mortgage ezy.

Their range of lite/lo/no doc products seems be much better than a lot out there that I have seen. Check out http://cplaza.com.au/images\commtraxxadvantage\partners\ezy\EzyFitLendingSolutionGuide.pdf (about 4meg) for their product info. If I am missing any obvious flaws in their products feel free to point them out....

Cheers

 

[redbox]

Mortgage Ezy products look good! i hope that they dont have diff max limits for WA though

 

[MTR]

Hi Welcome
Thanks for that link, will look into this on surface it looks very good.

Hi Redbox,
I find myself in similar situation and am also in WA.
I have used Resi Home Loans in the past and have managed to access 80% LVR (lo doc), against 1 security at value of 1.2M, anything above will be at 60% LVR. I will be looking at refinancing over the next 12 months at 80% LVR if possible.

Cheers

 

[redbox]

Hi MTR

Thanks for that - i will pass that on. Who would have thought that we would be faced with this sought of problem??!!