I was introduced to a FHB couple who had purchased an off-the-plan unit in Rose Bay Sydney back in late 2020, being peak COVID times.
- Purchase price = $910k
- Stamp duty & other purchasing costs = $27k (includes FHB discount)
- Less 10% deposit paid = $91k
- Remaining amount due = $846k
When they approached their bank to go to unconditional approval:
- Valuation = $980k
- Loan = $846k + $13k in LMI (87% LVR)
- Interest rate = 6.39%
When they were referred to us:
- We ordered 5 valuations – $950k, $980k, $1m, $1.05m and $1.1m
- Using the $1.1m val
- Loan = $880k without LMI (80% LVR)
- Interest rate = 6.09%
- Surplus cash = $34k ($880k – $846k)
So in summary – brokers have access to multiple lenders and can order free valuations at anytime and without cost. This meant the customer saved $13k in LMI, secured a lower rate of 0.30% and even had $34k cash left over to furnish the house of their dreams.
Don’t settle for one opinion and always seek the advice of professionals!
