Thanks Richard,

The reason we went with Liberty is because we did previously have a bad credit file . Since then , all our listings have been deleted and we now have only our current home loan for our block of land  , plus  the liberty finance in each of our names.

Some numbers if this helps ;

Income – $105k between us
Land loan – $120k ( joint names )   Value $160-$175k

( Paid $152k July 2010 )

Car finance 1 – $10k (joint names )
Car finance 2 – $5k  (wifes name only )

2  Dependents

No other loans or credit cards .

We need around $190k for construction , house should rent for approx $340 – $350 Per week  once finished .
Hope this helps and thank you again ,

Terry , I wish these were deductible loans but not ..

Hi Richard,

Thank you for the reply !! There is a ” little” bit of equity in the land but we are planning on using that for IP 2 very soon after completion of the construction . I think I will go ahead and look at CUA for the personal loan as they appear to have the lowest rates at 12.99 % .

Brad

Thanks Sez , I think that’s the best option . I guess we will pay and add it to the sale price .

Thanks so much for the comments so far !!

We will have had this loan for 6 months at the end of October which is when we would plan to re-finance. The loan is with loan star as at the time they offered the best rate for our credit situation. We are fairly confident the valuation would come back at a min of $30k more than we paid considering we first put our deposit in July 2010 . We would just like the lender or “a” lender to do the re-val at the end of October as was planned . We plan to spend around $220 k max on construction so would require around $44k as deposit , $20k from the grant and the rest in equity if it is available as to stay at 80% LVR . I understand my current broker is trying to protect us from breaking fees and such but the rent we will pay in the meantime will add up to at least an extra $10 – $12 k if we wait .

Thanks again .