It has been two weeks since the announcement and immediate implementation of the new LVR rules (yes, they effectively started straight away as requested by the Reserve Bank) and there has been considerable turmoil, confusion and even a bit of mild hysteria, with even the Banks not really knowing how to interpret these new rules.
Applications submitted but not processed prior to the 20th of July have since been declined meaning that those who were expecting to have an approval under the old rules have missed out. This has been a costly exercise as many clients had already gone ahead with engaging solicitors, building check companies and valuers to start their work.
Our team have been frantically working out all possible solutions with non-Bank Lenders and have a very good understanding of how they work; the costs, LVRs ,timelines etc. Already, we have had several contracts ‘saved’ by the Non –Banks. One that we got through yesterday had a floating rate of 5.59%, better than standard Bank rates.
Investors are a determined, resilient lot and we will help them find a way to allow them to continue to grow their wealth.
An ‘interesting’ by-product of these new rules that is worth noting is that Interest-Only loans are now declined so using the ‘like for like’ re-finance technique to refresh an Interest-Only term at a new Bank is a move worth looking in to.
If you’re worried, please get in touch with us and we will work with you on a plan to keep you moving forward. Even if we are unable to find you an immediate solution, we will work out a new timeline and save you the time and pain of applications and rejection.