Risk of no "subject to finance clause" for low LVR

My partner and I have found a PPOR offered for private sale which we close to making an offer on. We have done the research and believe our offer will be under what the property is worth. We have done all the checks including P&B and had the contract/S32 reviewed by a Lawyer.

Issue is the agent has indicated the owner is likely to reject offers "subject to finance".

We have done the maths with a mortgage broker and we will only need a loan of 60% LVR based on what we are going to offer. Also on our incomes we are easily able to service a loan of the size we need (would be able to service one double the size).

I have worked out that the bank would have to value the house at a RIDICULOUSLY low level (based on similar sales) for the LVR to even approach 80%. I can't see it happening.

I would imagine that there is low risk with going ahead with purchases without the "subject to finance" clause if that allowed us to get the house at a good price but what do other people think? Have we missed some other scenario that "subject to finance" would protect us from?
 
With a 60% LVR and good serviceability, the only thing that would get in the way of you buying this property is if you've got something very nasty on your credit report, or if there is something seriously wrong with the property.

If the property is in Melbourne Metro, it would have to be in bad condition to be a problem.

Something bad on your credit report would be a credit card or loan not being paid for at least 60 days or more. Even then it probably wouldn't be a big deal.

In most cases, going without a finance clause would be fine.
 
Agents *always* pressure you to take this clause off. If you are not 100% certain, leave it in.

I had a 4 week settlement whittled to 3 weeks due to vendor delays in signing, my bank then dropped the ball, and the agent suddenly changed their tune! "Oh its a good thing you put that in as now you won't be penalised". Settled a week late.
 
I am sure that is significant comfort to the 1-"most cases".

Going without a STF clause is not prudent unless you have the cash sitting there waiting....

last 11 contracts i have not had STF clause which had helped me to negotiate the price in my favour :D

never had any problems with the finance at all ;)
 
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