Browse Forums Home Finance 1 Jul 06, 2014 5:03 pm Hi there, I am looking at buying a vacant lot off Vic Roads and I've run into two issues with CBA I am also a first home buyer The Offer has been accepted at $149,000 + G.S.T ($163,900) I was hoping to front a 10% deposit ($16,390) + LMI First of all CBA say that I cant get a loan for the GST component and i will have to pay that out if my own pocket ($14,900) which is fine i can afford to do that After sending the section 32 to the bank they "valued" the property and told me that because there is a High Voltage power line across the property that it is classed as a high risk loan and I would not be able to get LMI so i would have to front up 20% Are there any other lenders out there that could either be able to give me a loan for the property with the GST Covered in the loan amount? or another lender who use a different LMI criteria? Re: FHO - having trouble with vacant lot finance w CBA 2Jul 06, 2014 7:24 pm Environmental issues on a valuation is subject to the lender and LMI. So it will come down to the valuation report nad if there's any positive sign to offset the High Voltage power line; so hard to say for certain which banks will accept your property at 90% LVR...however there's a few options you can consider; 1. Going with a diff bank that uses a diff LMI provider 2. A bank that has an internal LMI 3. Adelaide bank can provide a $20,000 side loan, so this might be enough to cover for GST and other cost. 4. A few banks are happy to take sale contract price only without a valuation done; however with a GST component it's also hard to say 100% for sure. 5. Using a guarantor loan to fund the remaining 10% or the total 20% even ( ie borrow 100% + GST + Stamp duty) High Voltage power line and flooding etc is common in Australia and every property is slightly different , so the "solution" will depend on the property at hand- but the above 5 is a good starting point. Cheers Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: FHO - having trouble with vacant lot finance w CBA 3Jul 21, 2014 4:39 pm Ah this is quiet a tricky predicament indeed... Property in close proximity (within 100m) to High Voltage Power lines will likely be considered unfavorably by most lenders above 80% and by all mortgage insurers given the high risk of reduced marketability of the property when it comes to resale. Also, future buyers may see this as a negative attribute and their inability to get finance above 80% will limit the pool of potential buyers as they will be faced with the same hurdles you are facing now. If the property is a good deal and you still want to go ahead with the purchase then you may consider using a Limited Security Guarantor option some lenders offer to boost the lenders security value & reduce their exposure. Alternatively, a non-refundable gift from a relative to cover the shortfall if you are lucky enough to have one with some spare $$$ to throw around. Either way its a good idea to consider why the lenders and mortgage insurers are being conservative with the property and think about how this is going to impact you in the future as a first home buyer with a limited equity position. Cheers, Grant Martin | Senior Mortgage Broker P | 1300 889 743 E | grant@homeloanexperts.com.au W | http://www.homeloanexperts.com.au traditional gable roof facade - Have you did the dark and light gray color combination in facade with gray stone in facade… 0 4211 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 56860 Would anyone on this forum know of a builder/company in Brisbane with house designs for a shallow block. I have a block 20 x 20 so with front and rear set backs I need a… 0 4743 |