Westpac won’t grant loan at 95% due to houses proximity of power lines
Hi all, me and my partner have just found ourselves in the middle of a sticky situation. For backstory we were pre approved for 650k and we were going through the first home buyers scheme. We purchased a property 10km from the Melbourne CBD for 620k with a 5% deposit through the first home buyers scheme and our mortgage broker told us we could make the offer unconditional as financially speaking we were rock solid.
Now two days into our 90 day settlement Westpac have finished their valuation and said they cannot give the Loan at 95% due to the houses proximity to power lines (house is in a court that sits alongside the freeway 3 houses back from the end of the court). They have said that the powerlines are causing a major fire risk and will only lend 80% or less.
This leaves us in a shit position as we cannot afford a 20% deposit but are locked into purchasing the property.
Our mortgage broker is currently getting another bank to do a valuation on the property and hopefully that sorts it but if it didn’t our mortgage broker is suggesting a guarantor to cover the 15% we need to make the 20% deposit as the easiest solution?
Me and my partner really don’t want this as we believe either sides parents may be able to be guarantor we don’t want to put them in that position and would like another work around.
Has anything like this happened to anyone and may have some ideas regarding a solution or anything to lead us down the right path?
Thanks for any help,
Regards,
Stressed FHB