Hello
I have a house which im currently sundividing and building a house on the back (battle axe) The bank is going to use the builders price report agreement thingy to as a go ahead on the value of the yet to be built house at the back. They are going to use the equity out of this to make it under an 80% loan. So that got me thinking ! I have a house available for me to purchase for $240k and its valued at about $500k it will also be positivly geared by about $20 bucks after rate etc . Can i use the equity out of this house to buy it ?
Thanks heaps Tim
Assuming you have no loan on the front house Yes you can certainly use the availale equity.
Probably need to explain to your Broker / Banker what you are after but as long as the valuation stacks up you could use the equity to go again.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have a loan on the front house and there is not enough equity in the front house to use as a depsit that is why the bank is using the equity out o the house that i havent built yet . Im using the commonwealth bank. Because they are already doing this i want to know if i can do this with purhasing a third already built property for 240k worth 500k ?
Simple answer then on that information is NO.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hello Richard
I am writing to just say that yes the commonwealth approved both loans by simply using the equity?
I am amazed as im sure you must be
No not suprised as i think you might have wrongly explained the situation.
No lender will lend against potential even the Commonwealth.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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