Buying land

Hi Rebecca, Thanks for the response.
My mortgage broker told me that nowadays banks do not give unconditional offers on land that is not titled. Hence i can only get a pre approval which i will have to keep extending every 3 months. However that can affect my credit score. He then suggested that he can give a comfort letter to the developer which is as good as a pre approval and will not affect my credit score.
The land sales office is also ready to accept a comfort letter.

Say i find a lender who can give me unconditional offer on my untitled land - then that doesn't guarantee me the best rates isn't it?
I am now wondering if i should just go unconditional on my contract since i don't think there is any way to get my deposit back either way if i cant proceed with purchasing the land at the end of next year.

The difficulty comes from changes to the valuation standards that have just come into play, but, if the valuer can access the land (it doesn't have to be pegged out, just visibly accessible) there are competitive lenders who can give unconditional approval for up to 18m. The key is getting access to the land.

The road to access my land has not been built yet. that is one reason it is a delayed release - Nov 2016.

The valuer has to sight the block - not necessarily drive to it, but, look at the land and be satisfied they have sighted the block by reference to maps and diagrams. Being able to sight it from a distance is not unreasonable. Anyway, worth a shot.

Loan lending criteria is always a changing marketplace as different lenders position themselves for different niches. As such trying to secure finance for anything 3mths+ out puts the lender into a position it possibly no longer wants. Pre approvals are only for piece of mind based on current lending conditions. If you want anything longer, you are rolling the dice. Follow your brokers advice. Feeling nervous? seek another 1 or 2 brokers opinions.

You'll get a pulse for whose in 'the know' and whos a 'joker' broker.

LIFE TIP "taxi drivers generally dont give good financial advice"