LVR

Any general questions you might have in regards to loans and finance.
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Rand
Posts: 3
Joined: Mon Mar 08, 2010 7:47 pm

LVR

Post by Rand »

Hi
You seem to know your stuff so maybe you can help me
I want to apply for a home loan with as low an LVR as possible but still would like to keep it above the level that would require insurance - 20% down???
As Im new in Australia from what I have read I need to put down a 40% deposit.
Not looking at a very expensive house - 500 000 max
Can show bank deposit here in australia of 350 000
Have registered a limited company with gst registration but that was only last month
Anyway to do a down payment lower then 40% or is it a fixed in stone rule?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: LVR

Post by Otto Dargan »

Hi,

LVRs for non-residents (Foreign Citizens living in Australia) vary depending on the situation.

If you cannot prove your income then generally you need to put down a 40% deposit. A recently registered company that is GST registered would be fine for this type of loan.

Depending on the details of your situation then we may be able to get you 80% again without any proof of income albeit at a higher rate.

If you can prove your income from a regular job (other than your own company) then we may be able to get you a loan for over 90% of the property value.

If you have a $350,000 deposit then buying a house for up to $775,000 should be no problem with or without proof of your income ($350,000 / 0.45 = $775,000. I have allowed a 40% deposit and 5% for costs such as stamp duty). Your rate for this type of loan still has an excellent discount as the size of your deposit reduces the risk to the bank significantly.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Rand
Posts: 3
Joined: Mon Mar 08, 2010 7:47 pm

Re: LVR

Post by Rand »

Thanks for the reply. 500 is fairly much top of the range housing here where Im at
Im Australian and live here now. Want to leave enough in the 350 to buy an investment property as well later in the year.
Whats the sort of rate we would be looking at 80%LVR?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: LVR

Post by Otto Dargan »

At 80% LVR the rate you would be able to get would range from 6.26% to 7.7% depending on if you can provide income evidence or not and the nature of your business. So it is quite possible that you may be eligible for quite a cheap loan. This has taken the recent rate increase into account.

Note that we really need to know the full details of your situation to give a more accurate quote. Similar to how it is impossible for a builder to give you a quote to build a house if they don't know how big it will be, we cannot accurately quote until we know which lenders can approve your loan.

As your situation is more complicated than most we would get one of our non-resident specialists to work out which lenders can assist and then come back to you with the details of the best loan available from the top 2 to 3 lenders. You can then decide which one you prefer.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Rand
Posts: 3
Joined: Mon Mar 08, 2010 7:47 pm

Re: LVR

Post by Rand »

Sorry Otto but I havent explained myself
I returned to Australia after 16 years in the USA. Hit by the RE downturn over there
Expat and here for the next five years hence the LTD company here.
Those rates seem reasonable given its no document scenario and 20%

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: LVR

Post by Otto Dargan »

Ok great, give me a call on 1300 889 743 at your convenience and I'll go through it with you in detail.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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