How To Get A Mortgage On Your Recently Registered Land
During the Covid years when interest rates were low, a lot of investors and buyers put down a deposit on unregistered land with the idea that once the developer registered it, they could take advantage of record low interest rates and build a house as part of the development.
Unfortunately, with the rates rising 4.25% since May 2022, there are a lot of people who are now at risk of losing their deposits on unregistered land because they can’t secure finance at the current interest rates.
We’ve recently helped many people solve this exact problem.
The reason that it is so hard to get approved for a home loan or an investment loan right now is because of the 3% buffer added to the interest rate when lenders assess your borrowing capacity. The lender has to add some buffer to the current interest rate and see if you can still afford the loan if the RBA increases interest rates in the future. Say you are applying for a loan at 6%, then a traditional lender needs to know that you can afford a repayment of 9% for the sum of money you are looking to borrow.
Thankfully there are financing options other than bank lenders. Ones who can assess loans with a lower assessment rate.
So, if you’re in a situation where you’ve been declined finance to settle on land that is due for registration, we can potentially help you find alternative financing options that may allow you to settle on the land so you can keep your deposit.
The first step to seeing what your options are is to schedule a no-cost and no-obligation finance strategy session by calling 1300 661 211. During that session, we will understand your situation so that we can find out what your options are to get you finance so that you can keep your deposit on your land.
Patrick is a Director and a Home Loan Specialist. He has been helping Australians with home loans since 2001. Prior to working as a mortgage broker Patrick was employed by Macquarie Bank for 3 years and also worked as an accountant for a publicly listed company. Patrick’s qualifications include:
Bachelor of Business, UTS Sydney. Majored in accounting and sub-majored in Finance and Marketing.
Diploma of Finance and Mortgage Broking Management FNS50310
Certificate IV in Financial Services (Finance/Mortgage Broking) FNS40804
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