lender who loans on new value?

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fullout
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@fullout
Join Date: 2003
Post Count: 233
December 29, 2003 - 9:29 am
DOes anyone know any lender who will lend on the new value (for a delayed settlement, or renovation), and not the purchase price?
I am in melbourne
thanks
***********************
melbear
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@melbear
Join Date: 2003
Post Count: 2,429
December 29, 2003 - 12:48 pm
fullout, if your settlement is longer than 12 months, I think there are heaps of lenders who do it. On servicability, we had Homeloans Ltd, and when we were more desperate, Pepper Home Loans both loaned to us on a total of 7 properties on value rather than purchase price (OTP purchases > 12 months)
Any good broker should be able to help out here.
Cheers
Mel
Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
December 29, 2003 - 12:53 pm
All depends on the time frame involved.
One idea is to have a property revalued after 3 months or so and borrow the additional funds then to repay the reno fund source – often the credit card!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
December 30, 2003 - 3:20 am
Most lenders will lend on value if the contract has been signed more than a year ago. There are some lender out there that will lend on value straight away, but the LVRs are low at 70%.
One way around it is to pay cash (from a LOC) and then get a loan after settlement based on the value.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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December 30, 2003 - 4:28 am
There are lenders around who will be prepared to lend based on the valuation rather than the purchase price the moment the title is in your name.
So settle say today, the title goes into your name a week later or whatever and thence you can immediately re-apply for a larger loan based on the valuation figure.
No need to wait for 12 months or whatever.
Pisces133
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December 30, 2003 - 4:32 am
Oh, I forgot to mention that the rates of the lender I am thinking of is 6.99% p.a. for a Standard Variable rate, up there with the mainstream lenders.
They also have a honeymoon period as well !!
Pisces133