Purchase Price v Valuation Price

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From: Mel G


I bought an off the plan property in June 2001 and it will be coming up for settlement in about May this year. I am currently doing some research on finance and am finding that banks are willing to lend 90% based on the VALUATION price of the property but the mortgage insurers will only lend based on the PURCHASE price. Has anyone been able to get a 90% loan based on the VALUATION price and if so, where and how???

Thank you for your assistance.

Mel
 
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Reply: 1
From: Mark Laszczuk


Mel,
Talk to Rolf Latham at: rlatham@asapfinancial.com.au He shold be able to help you.

Mark
'no hat, some cattle'
 
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Reply: 2
From: Rolf Latham


Hi Mel

You can think the push the OTO envelope proponets to the limit crowd for this.

LMI and OTP has become like a clam.

Where there is not an OTP issue involved you can get val over contract even with LMI if its a favourable Purchase (just did one this week.)

The only solution that I can offer is to finance at 80 % of val, and use a lender that does not have large exit fees. Then refinance to 90/95 % 3 months after settlement, with another lender.

Ta

Rolf
 
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