Hi All,
This is the first time that I will be having my property re-evaluated.
I am trying to work out the process that is used by the banks and applying for an increase in the loan.
Are my assumptions below correct, please inform me if I am not taking something into consideration or have incorrectly assumed an action.
(1) Bank sends a valuer to re-evaluate property estimate.
(2) Bank approves valuation at X amount,
(3) Apply for refinance up to highest LVR limit possible
(4) Bank approves or adjusts finance limit
(5) Bank provides further funds into nominated accountAlso if i am not happy with the valuer, is there another way to have a better valuation performed and approved by the bank?
Cheers,
MiikeValuer can do a number of types of valuations
Curb side – They drive past
Full – They examine the inside and outside of the property
Estimation – From the plans of the house they estimate the value.
Banks use a panel of valuers and you could ask the bank if they accept a valuation from another valuer on their panel,
ASK the bank for a list of their panel valuers and ask if they accept all of them for the loan you are looking for.Normally line of credit loan – 80% LVR – (debt owing)
Line of credit loan is a facility that you can draw on when you need finance to a pre approved limit and then you transfer the money to your nominated savings account.Hi Duckster,
I'd need an full evaluation performed as I have renovated the property and have had structural changes made to increase the value.
The loan type I have is an IO variable, i would be looking to increase the value of the current loan to the highest point of LVR so funds are available to me should I wish to use them. (i.e. funds sit in the offset account). Is this possible or must I request a seperate line of credit on the active loan?I'll request my bank to provide me their panel of valuers and investigate which valuer is most likely to give me the desired outcome. Is there any valuers that anyone recommends? My target is 2 bedroom flat, very modern clean and great location.
Cheers,
MikeHi Mike
Regretfully you will not get to choose the type of valuation your Bank performs as they are the one normally paying for it.
Certainly you can request that they carry out a full internal valuation and see what they say.Definately dont want to increase the current loan but take out a separate loan as otherwise you will contaminate the original loan and find it difficult or even ni impossible to cliam the interest on the Investment portion.
Really doesnt matter whether it be a LOC or an IO loan although if you dont intend to purchase for a while then you might struggly to convince the ATO that you wish to claim the interest on the IO invt loan when you havent used it for investment purposes. Appreciate one day you will it is all in the timing.
Finally remember your Bank may not have a panel of valuers and merely use 1 valuer for the area so you will be limited if you dont like what he says.
Why not get your mortgage broker to organise a valuation for you so at least you can see in advance what the valuation will come back in at and can decide whether you want to move forward or look to refinance.
Richard Taylor | Australia's leading private lender
Thanks for the information guys,
I'll be discussing this all with my mortgage broker shortly.
I'm fortunate that I do get free evaluations from the bank, so it can't hurt to discuss this with them.
See how I go.
Cheers,
MikeProcess for Product RecertificationPurpose
An ongoing re-evaluation process for CRS Quality Tested Software/On-line service ensures that currently recommended software/On-line service programs continue to merit the Quality Tested Seal on the basis of product viability, pricing, customer support and vendor marketing practices.
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