Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
How much can I borrow on a 95% Homeloan; Maximum Loans
Topic Started: 11 Sep 2014, 03:49 PM (1,525 Views)
peter fraser
Member Avatar


After a discussion over at MB with a gentleman who at first told me that he could get a $1,000,000 loan at 95% LVR and has now been advised by his bank that he can get a $1,400,000 loan at 90% I thought that I should give everyone some basic facts.

Neither of the two scenarios he has put forward are possible, but it's what he was told by his "Relationship Manager" so let's not blame him.

For the record, for borrowers in major cities the maximum loans are:-

at 95% $750,000
at 90% $850,000

In rural centres it's less depending on the population of the city or centre.

Here are the Genworth details lifted from their policy which is here - http://www.genworth.com.au/lender-centre/policy-and-product-information

Look under "Maximum Loan Matrix"

QBE policy is almost identical.

At around $2,500,000 or $3,000,000 banks start to limit LVR levels to around 70% and then they fall to about 50% for the higher loans, and even lower for the mega mansions - it gets a bit feely touchy depending on how strong the borrower is, as you would logically expect.

Posted Image
Attached to this post:
Attachments: Maximum_Loan.jpg (114.63 KB)
Edited by peter fraser, 11 Sep 2014, 03:50 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

On a 95% home loan you can borrow 95%.
Unless we are in a calidascopic infinite multivers.
Peter
Wait a minute,Australia springs to mind.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
A Lurker
Default APF Avatar


In certain circumstances banks (even major ones) will do a loan on their own books without LMI that doesn't conform with that table. The guy on the other forum may be right.
Profile "REPLY WITH QUOTE" Go to top
 
peter fraser
Member Avatar


A Lurker
11 Sep 2014, 05:30 PM
In certain circumstances banks (even major ones) will do a loan on their own books without LMI that doesn't conform with that table. The guy on the other forum may be right.
He was using HSBC who have a different arrangement with QBE - they can go higher at 90% LVR but they won't go to 95% at all so he was initially wrong but now he seems to have the right end of the stick.

Any expressed market opinion is my own and is not to be taken as financial advice
Profile "REPLY WITH QUOTE" Go to top
 
Mike
Default APF Avatar


peter fraser
11 Sep 2014, 05:52 PM
He was using HSBC who have a different arrangement with QBE - they can go higher at 90% LVR but they won't go to 95% at all so he was initially wrong but now he seems to have the right end of the stick.
I have recently completed a loan for owner occupier (construction) at 80% LVR for well over a million.

If you keep the loan to under 80% the loan comes down to valuation and severicability provided you pass credit check (score).

I know some lenders will lend you more then $1,000,000 at higher LVR % but then LMI wont pass the loan if it is over $1,000,000 and over 80% LVR. LMI just wont approve the loan over $1,000,000. You can lend $1,000,000 at 90% but you need to provide your own funds for settlement if you need more then $1,000,000.

I dont know of any lenders or LMI which would approve a $1,400,000 loan at 90-95% not sure that is possible unless you are very rich with some good conections.

The experience I have had with my developements is banks get nervous with multi unit developements over 60% LVR. I often use multiple lenders for the one developement if building more then 3 structures. One lender will fund 2-3 constructions while another lender will fund the others, all kept to around 60% LVR. I find it to hard once you get close to 70% LVR, just not worth the headache the banks give you.

The reason I stick to 2-3 structures per lender is if I do more then this, they class you has a developer and a whole new criteria of lending applies. So I try and keep it 2-3 per lender. I could do a developer loans if I wanted to, but starts to involve off the plan sales and just takes alot of time. Maybe if I get into larger developements but I am happy doing what I do well, dont get to greedy.
http://mike-globaleconomy.blogspot.com.au/
Profile "REPLY WITH QUOTE" Go to top
 
Drgonzo
Member Avatar


i am getting 90 through my bank with no LMI and variable rate under 5 percent.
Profile "REPLY WITH QUOTE" Go to top
 
peter fraser
Member Avatar


Drgonzo
11 Sep 2014, 07:43 PM
i am getting 90 through my bank with no LMI and variable rate under 5 percent.
A couple of lenders now offer 85% with no LMI but I haven't seen a 90% LVR loan offered by a bank.

May I ask which lender you are using?
Mike
11 Sep 2014, 07:13 PM
I have recently completed a loan for owner occupier (construction) at 80% LVR for well over a million.

If you keep the loan to under 80% the loan comes down to valuation and severicability provided you pass credit check (score).

I know some lenders will lend you more then $1,000,000 at higher LVR % but then LMI wont pass the loan if it is over $1,000,000 and over 80% LVR. LMI just wont approve the loan over $1,000,000. You can lend $1,000,000 at 90% but you need to provide your own funds for settlement if you need more then $1,000,000.

I dont know of any lenders or LMI which would approve a $1,400,000 loan at 90-95% not sure that is possible unless you are very rich with some good conections.

The experience I have had with my developements is banks get nervous with multi unit developements over 60% LVR. I often use multiple lenders for the one developement if building more then 3 structures. One lender will fund 2-3 constructions while another lender will fund the others, all kept to around 60% LVR. I find it to hard once you get close to 70% LVR, just not worth the headache the banks give you.

The reason I stick to 2-3 structures per lender is if I do more then this, they class you has a developer and a whole new criteria of lending applies. So I try and keep it 2-3 per lender. I could do a developer loans if I wanted to, but starts to involve off the plan sales and just takes alot of time. Maybe if I get into larger developements but I am happy doing what I do well, dont get to greedy.
Yes Mike you will get well above $1M at 80% LVR.

BTW technically you can buy or build up to 4 residences on one lot using a home loan with quite a few lenders. It all has to service though.

Stick to home loans under 80% wherever you can, it's cheaper and easier. With development loans you need presales and all sorts of tight controls.
Edited by peter fraser, 11 Sep 2014, 08:42 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
Profile "REPLY WITH QUOTE" Go to top
 
hoofarted
Member Avatar


I managed to get $870K @95%
Profile "REPLY WITH QUOTE" Go to top
 
peter fraser
Member Avatar


hoofarted
11 Sep 2014, 09:37 PM
I managed to get $870K @95%
That's an LMI cost of about $24K plus

Why would you? I don't follow your logic with that.
Any expressed market opinion is my own and is not to be taken as financial advice
Profile "REPLY WITH QUOTE" Go to top
 
Drgonzo
Member Avatar


peter fraser
11 Sep 2014, 08:38 PM
A couple of lenders now offer 85% with no LMI but I haven't seen a 90% LVR loan offered by a bank.

May I ask which lender you are using?

Yes Mike you will get well above $1M at 80% LVR.

BTW technically you can buy or build up to 4 residences on one lot using a home loan with quite a few lenders. It all has to service though.

Stick to home loans under 80% wherever you can, it's cheaper and easier. With development loans you need presales and all sorts of tight controls.
Macquarie
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy