Lenders Wanted

NSW, $450K, Investment, Purchase, Full-doc, 90% LVR

Posted on 15/08/2013 2:53:02 PM

Client is looking to purchase off the plan with a extended settlement period of 18-24 months. I know St George allow 17 month settlement and CBA are 18 months. Any that do longer?

Also this will be an LMI loan (90%), how long is conditional approval for, before the application has to be re-submitted?

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  • AB21/08/2013 2:53:43 PM

    More good advice... thanks Lou! Sounds like a great way to minimise risk. I guess there will still be valuation risk once the construction is complete and settlement is imminent, but your suggestion appears to reduce the other risks. Thanks for your input.

  • Lou21/08/2013 9:13:27 AM

    Hey AB... I like Brado's comments (and I will be looking over ANZ's policy myself - thanks!). For this loan, I would be looking at having a (fully assessed) pre-approval to start with... extending that when it gets close to the 90days expiry, and then getting it converted to a full approval when the sunset clause is within the bank's time frame (12-18 months as you mentioned earlier). In this way you have "the client" approved and minimise the time-risk and policy changes that may happen.

  • AB20/08/2013 3:28:48 PM

    Thanks for the advice, Brado, much appreciated. I will check out ANZ.

  • Brado20/08/2013 3:23:53 PM

    off the plan.. its risky! but can be awesome...

    I always tell my clients: no new debts; keep saving; don't change jobs; don't get a default...and then we should be fine, as long as the valuer does his part.

    ANZ also have a pretty good long term approval product for off the plan.

  • AB20/08/2013 2:41:11 PM

    Thanks Brado. I understand that the client will need to provide updated payslips, etc at time of settlement, that's not a problem. My query is about maximising the chance of re-approval at settlement time. I assume valuation issues are a risk. Is change of bank policy also a risk with extended settlement periods? Anything else to be aware of re finance for off the plan purchases?

  • Brado20/08/2013 1:37:09 PM

    realistically, under NCCP, approval cant stand for more than 90 days. Are you trying to achieve unconditional approval ? or do you want to ensure the client will gain approval come settlement time?

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