Hey guys im just after some advice to steer me in the right direction. I thinking of trying a renovation and have about 40k in savings, but i would like to use the savings to fund the reno (basic cosmetic reno only) and pretty much get the home loan without any actual deposit.
Would the bank lend without a deposit if i can show that i have savings and i can afford the repayments?
I have another property with 70k in equity although lending from this would put me over the 80% LVR.
Ideally i wouldnt want to spend more than 400k on the home.
Anyone who has been through this situation before you advice would be greatly appreciated.
Thanks heaps.
-Johnnyyeah im with ya johnny, just did a reno and loved it….
might be my next move as well.. a nice cosmetic reno that can net me 70k with <400k outlay would be nice
Johhny
Hate to burst your bubble but unless the securities are cross collateralised no lender is going to lend you 100% of the purchase price allowing you to use your savings as deposit for the renovations.
If the work is being done on a fixed price basis you might find a lender be preapred to advance stage payments based on the increased value.
Also your available equity is not the same as your useable equity. Most lenders wont go past 90% lend on a refinance.
Richard Taylor | Australia's leading private lender
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