Browse Forums Home Finance 1 Sep 23, 2009 12:13 pm Hi all, I hope the brokers here or others who have borrowed for rural property, can advise me. Long story short, I got pre-approved for a home loan with my credit union YAY! During the application process and a face-to-face discussion, I advised that I was buying in country Vic. The donkey I dealt with, told me I could borrow 95% with LMI, so I was very excited to finally realise my dream! I found a lovely little home which ticked all the boxes. Based on my pre-aproval, got the ball rolling for a transfer with work (I move in 4 weeks). I was on the verge of a second inspection and making an offer and contacted my credit union to ask a question. I spoke to someone else who advised me that they would only loan 70% on rural!!! WHAT???? This was the first I had been told this and I don't have 30% deposit I've had a bit of a look around on the net and from what I can see, 70% LVR on rural seems standard with most lenders. Is this right, or are there lenders who will loan more with LMI? I'm happy to go to a Mortgage Broker, however, thought I'd ask here first to see if there's any point. Obviously, I won't be purchasing anything before I transfer, so I've applied for a couple of rentals. To be honest, I'm really gutted with what's happened and so damn angry with that donkey at the credit union Thanks for listening and sorry for the rant. I look forward to any info you guys can give. Cheers Matilda Re: Finance for Rural property 2Sep 23, 2009 12:48 pm I think that you will find this with most standard lenders. Even a broker will not be able to get around this one with a "normal" lender. They may however be able to get you a loan from a non-mainstream lender - but you will need to be careful of any costs or higher interest rates that may apply. Anyone looking at rural land should also be aware that sometimes maximum land sizes also can factor in. Some things are worth waiting for. Re: Finance for Rural property 3Sep 23, 2009 2:45 pm Sorry to say but lending ratios are always restricted for rural properties, you would be better off dealing with small local lenders such as a building society. Re: Finance for Rural property 5Oct 14, 2009 11:12 am Hi Matilda, We were in exactly the same situation. Bank 1 (whom I had, previously had a mortgage with) would not accept a 20% deposit for our rural property, they wanted 30%. Now this property was an absolute bargin and we would have definitly missed out on the property if we had to wait to save up an extra 10%. So that was not an option. We rang the real estate agent that was selling the property and told him that the sale was going to fall through if we didnt find a lender. He gave me the number of the branch in town. I told the manager that we would take out a loan if the deposit was going to be 30%........ She couldnt believe that bank 1 wanted a 30% deposit in the first place. Long story short, they proceeded with the loan (at 20% deposit), and now we own 10acres of beutiful land. We didnt incur any penality cost nor are we on a higher intrest rate. It would have been the same as if we had brought in the middle of brisbane. Good luck and dont give just try some other lenders. Our Build https://forum.homeone.com.au/viewtopic.php?f=31&t=36661&start=40 Land Settlement - 19/07/09 Building Deposit Paid - 14/02/10 Site Scrape - 25/08/10 Slab - 01/09/10 Frame - 15/09/10 Roof - 21/09/10 Pre Wire/Plumbing - 23/04/09 Bi-Folds - 24/09/10 Bricks - 13/10/10 Plastering - 13/10/10 Cornice, skirting, shelving - 14/10/10 Re: Finance for Rural property 6Oct 14, 2009 12:31 pm Rural land can be a specific topic with lenders. Sometimes its not so much that the title of the land is zoned as rural rather the postcode/suburb that it falls within. I know of some suburbs here in Queensland near ipswich that are unacceptable at the Loan to Value Ratios you are talking about but the suburb next door is acceptable. Sometimes even within the same postcode even. These restrictions more often than not are due to Mortgage Insurers requirements. You may find joy with some of the Lending Institutions that have their own in house Mortgage Insurers or the authority to sign off on postcode/suburb without having to get outside approval. Re: Finance for Rural property 7Oct 14, 2009 10:28 pm HI, im not building rurally but my suburb was categorised like the previous poster stated. i could only borrow a certain percent because of this. regards building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/ Re: Finance for Rural property 8Oct 16, 2009 1:14 am Hi Matalida, You might want to do some more research into this now if you are still after a rural property. The latest money the govt has handed out has gone to a couple of lenders who aren't in the mainstream but are still quite competitive. I know of one which got a fair chunk of the $8bn who deals in rural property but previously only did 70% LVR. Instead of discounting the interest rate, it has decided to increase it's LVR that it is willing to lend at and last I heard the were looking at going to 95% for all their products. When I asked today, they were just going to confirm this so it looks like a lender or two might do it. Mind you, I can't see you getting this at under 6% however that would depend on what you want and what you are willing to pay I suspose. Sorry but don't like naming lenders (good or bad) on any site but if you talk to most brokers they will tell you who they are Re: Finance for Rural property 9Nov 08, 2009 8:09 am H_O_D, Trent and glenglen, thanks for your replies and the information, that sounds a bit more encouraging! Since my original post, I've now moved to a large regional centre and have a 6 month lease here. In 4 months time, I move again to a smaller town (40 minutes from here) which is experiencing considerable growth. I'm so glad I came back here and found these new replies It's given me hope and the incentive to make some enquiries with other lenders and take it from there. I'll keep you guys posted. Thanks once again singlemum, congratulations on your pending build, it must be a very exciting time for you. I wish you smooth sailing and rapid progress Hi Renee, Boundaries in NSW are generally shown on Deposited Plans. When they put boundaries into SIX Maps from these plans, there are various reasons that these often do… 1 2023 you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 56292 You might be able to apply to divert the sewer at your expense. In NSW you would contact a Water services co-ordinator and they would give you advice as to whether or not… 1 16146 |