Lenders Wanted

WA, $593K, Investment, Purchase, , 92% LVR

Posted on 13/03/2014 12:49:27 AM



I have a couple in Meckering WA (6405) which is approximately 115km from Perth CBD have confirmed via QBE website that maximum lend they will consider for this location is 90%.

Clients have existing Keystart home loan secured against investment property in Meckering loan balance is $181,000 against security value of $260,000 so we need to see if we can draw out any equity upon refinance.

Next part of the deal comes with purchase of another investment property in the same postcode sale price $375,000. Security type is house set on 38 acres with 4 sheds, house and 2 rainwater tanks which I believe is zoned as rural residential. I have also confirmed that this property is classed as non incoming producing according to what I have been told.

Bit about the applicants male is farm manager PAYG and has been doing the same job for 9 years and his Mrs is a bookkeeper since October 2011. They have 4 dependents, Centrelink benefits, receive rental income for existing investment property and also proposed rental on new place. They have been living on the farm where the male applicant lives and do not pay any bills or rent as this is part of his salary package.


Lets assume that QBE accept the securities at 90% will LMI be capped on top of that? From this point I reckon it passes servicing.

Thoughts on this one?



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Add your reply
  • Phillip Dibben22/03/2014 9:02:44 AM

    Is the farmer also part of the farm business?
    There may be an opportunity to avoid LMI if the farm is able to contribute additional equity into the new property.
    It would also appear to be an opportunity to get a financial planner involved. Hervey concentration of geared investment properties in one location may not be best serving the clients interests, unless there is something other than investment on their minds with this strategy.

  • Steve Rasmussen17/03/2014 4:42:47 PM

    To me BankWest would be the first one I'd call.
    - Acreage lifestyle at that size is fine
    - Will cap LMI over the 90%
    So, provided servicing passes, it is clear credit and there is nothing adverse in the valuation that either BW or QBE take exception to, it should work.

  • BRIAN BROKER14/03/2014 2:30:44 PM

    CBA will lend 95% with capitalised lmi on new property but only 90% on refi. Property is semi-rural as too small for rural.

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