Mortgages on LSB's over 10ha?

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8 years 9 months ago #40107 by Macca
Hi guys,

We have sold our current LSB and have found one that is approximately 50 acres in size that we really like. Unfortunately, we are struggling with getting a mortgage despite having over 50% deposit. Our current lender (Westpac - 10 years mortgage history) insists that a property of this size falls under a business loan requiring the mortgage to be repaid on a 15 year term, unfortunately we found this out after spending $1,200.00 on a valuation....

We tried Mike Pero Mortgages and the guy came back saying he was "out of his depth" trying to organise a mortgage like this!!

For those of you who live on a 10ha or larger block - who are you using for your lending or arranging your mortgages? We would be happy with a 20 year term if that was the best we could get.

Appreciate any advice!

Macca
Four Oaks Farm, Carterton RD1
West Taratahi Weather Station
www.cartertonweather.org.nz

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8 years 9 months ago #511339 by muri
Replied by muri on topic Mortgages on LSB's over 10ha?
What about a mortgage broker, they can often help in such a situation

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8 years 9 months ago #511340 by Macca
Replied by Macca on topic Mortgages on LSB's over 10ha?
Hi Muri - tried Mike Pero Mortgages broker so far who said "he was out of his depth".... really need a specialist rural lender...

Macca
Four Oaks Farm, Carterton RD1
West Taratahi Weather Station
www.cartertonweather.org.nz

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8 years 9 months ago #511341 by Aquila
FMG, Only people to bother with.

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8 years 9 months ago #511343 by Macca
Replied by Macca on topic Mortgages on LSB's over 10ha?
Do FMG provide mortgages? Can only find their insurance products....

Macca
Four Oaks Farm, Carterton RD1
West Taratahi Weather Station
www.cartertonweather.org.nz

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8 years 9 months ago #511345 by kate
Replied by kate on topic Mortgages on LSB's over 10ha?
Try SBS, we found them very good.

Web Goddess

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8 years 9 months ago #511347 by kai
Replied by kai on topic Mortgages on LSB's over 10ha?
Try another agent withing Mike Pero, we were approved for an "unusual" mortgage via the broker with the same bank that had already turned us down.

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8 years 9 months ago #511351 by keppelk
We used Mortgage Link (Otago branch) and ended up with a Westpac loan for 15Ha bare land. Our broker was really good to deal with. We had a number of good offers within a few days of the initial appointment.

If your having trouble with local brokers, try further afield. If you have an existing relationship with a bank, try direct too. Sometime the rural lending guys are much more in-to-it than the standard mortgage lending teams.

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8 years 9 months ago #511367 by ihungia1172
Had the same problem with Westpac your history means squat to them. Used TSB who were both approachable and helpful.

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8 years 9 months ago #511374 by chocolatewoolnz
Try ASB rural team. They have rural bank managers who lend for smaller blocks (i.e. lifestyle blocks) up to $1m. You should be able to get a 20 year loan from them.

86 acres with Gotland, coloured merino and a few white sheep www.chocolatewoolnz.com + 1300 strawberry plants www.gilchriststrawberries.co.nz

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8 years 9 months ago #511397 by max2
Replied by max2 on topic Mortgages on LSB's over 10ha?
Over a certain acreage size, it becomes farmland and thus the lending % drops.

We have/had mortgages with both BNZ and ANZ our current one. They allowed a certain % surrounding the house to be classed as lifestyle block, thus residential rates, and the rest farmland.

This breakdown may assist you.

I was surprised to learn that farming lending interest rates were higher than lifestyleblock though.

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8 years 9 months ago #511400 by max2
Replied by max2 on topic Mortgages on LSB's over 10ha?
So your next step is to show how you intend to derive income to support the ''farming business'. It does get to the nitty gritty but don't lose heart.

Think about your plans for the block. Does it include a house you ''could'' obtain a rental valuation for?

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8 years 9 months ago #511413 by lisaeve
second the ASB rural suggestion. We used a local mortgage broker and they were great.

17 Ha lifestyle property in Bay of Plenty... 7 Ha covenanted bush, remainder scrub, hills, and flat.

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8 years 9 months ago #511416 by oskatd
ANZ, ours isn't a business mortgage though, our block is just over 10ha, and our term is less than 10 years - ridiculous repayments to try and get rid of the damn thing!

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8 years 9 months ago #511460 by Macca
Replied by Macca on topic Mortgages on LSB's over 10ha?
Thanks for all the awesome suggestions guys, we have started negotiations with ASB, BNZ and Westpac (who had a change of heart today). TSB were not interested at all. Will let you know how we get on.

Macca
Four Oaks Farm, Carterton RD1
West Taratahi Weather Station
www.cartertonweather.org.nz

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