Hello all, We are considering buying a block of land and building on it once it is titled. At the moment we do not have 20% deposit and the best we can manage is 8%. I am OK with paying LMI and would like to capitalize the LMI which brings the LVR to just under 95%.
Our mortgage broker has told that it is not easy to get a loan with 95% LVR and even if banks agreed they would need buyback and construction clauses in the land contract. Is this the case with all banks? I have got in touch with the developer asking if such a thing exists in their contract. Yet to hear from them.
Should I be looking at a different broker? What are my chances of getting a land loan and a construction loan with LVR 92%? The land titles in 6 months.