Q For the mortgage brokers.

We are building a house, with settlement on completion. We signed contracts September of last year and will be looking at completion in september or August (or possibly later :rolleyes: ) this year. So in all, there would be more then 12months between exchange and settlement. Does anyone know of any lenders out there who will take the valuation of the house into consideration over the purchase price (it would be valued around 40k more now) when working out the LVR?
Hi Rugrat,

I doubt it - they determine LVR by either purchase price or valuation (whichever if the lowest).

It's all good though. Just access some of that sweet equity after settlement :)


OTP style purchases used to be 12 to 18 mths, then they would look at current value. Of course if the currrent value is lower than contract they will take the current : )

At 80 % lvr of current, you might find a lender or 2 that will entertain it.

Used to be quite comon, but havent one many OTPs that have had much growth in recent times.