Do lenders use their valuation or the purchase price to determine the LVR?
Posted: Wed May 22, 2019 3:01 pm
Hi, fourteen months ago I signed a contract and put up a 10% deposit on a 2 bedroom apartment being developed by a reputable developer. The contract price is $603,000, however, I’m estimating the market price of the property to be in the $680,000+ range. The unit is due to settle in late July or early August of this year. I’m trying to ascertain whether the lender will use their valuation or the purchase price to determine the Loan to Value Ratio?