There is always an area in each city or region where the property prices are a step up on the rest! For the Northern Rivers that area is Byron Bay. This means that house prices in Byron Bay are generally higher than other parts and turn home loans in Byron Bay are generally higher then the rest of the northern rivers. It also means that those who have purchased in Byron Bay over the last 5 years have benefited from a huge jump in house prices, rental demand and now Byron seems to be the area of Air BB with every second house getting rented at some stage during the year.
Does this mean that the approval process for your home loan in Byron Bay is going to be different to the rest of the Northern Rivers?
No – the lenders do not assess home loans in Byron Bay differently to home loans in Ballina or other areas of the northern rivers like Lismore.
The price of the property will not impact the assessment criteria. The same credit criteria apply. You must meet serviceability (that is afford the loan), you must have good account conduct, you must have funds to complete the purchase and remain within the LVR policy (maximum amount lenders will give you on the properties in the area). The LVR policy may change if the property is a multi-million-dollar property then some lenders may require a larger deposit to be contributed. The reason for lenders not borrowing the same amount on the more expensive multi-million-dollar properties is that there is more risk of losses to them.
So if you are looking to get a home loan is Byron Bay or any other area in the Northern Rivers you need to call ZEP Finance – We can take a look at your borrowing capacity and your purchase capacity. That is the first step to buying your own slice of paradise. Or if prices keep going up fully kitted out wheelie bin next to the beach.