All Topics / Finance / Adding to HL for reno advise please.

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  • Profile photo of wishfulwishful
    Member
    @wishful
    Join Date: 2007
    Post Count: 9

    Hi,

    I was just after some advise about home loans and borrowing extra for a renovation.  We are currently with ANZ and we applyed to borrow extra to renovate our house using our equity.  We wanted to borrow $25000.  Which only took us up to 80% of our homes valuation (bank valuation).  Anz came back to us saying we were approved as long as we provide quotes.  We went back to the bank saying we wanted to DIY as we will get more for our money.  We supplied them with a letter showing costing etc.  They came back to us 10days later with that they still wanted quotes.  So at the moment we are unsure what to do.  Does anyone have any comments or advise on how to get around this?  Or possibly just advise on our situation?

    Thanks :)

    Profile photo of YoungInvestorYoungInvestor
    Participant
    @younginvestor
    Join Date: 2003
    Post Count: 377

    In all seriousness, just provide some quotations and then do it youself anyway.

    Unless the bank is insistent on transferring the funds directly to the quoters directly (highly unlikely), then this will get you the funds you need and you can then complete the work yourself.

    Of course, if this will keep you up at night because you feel you are being dishonest, perhaps don't do it :)

    Regards,
    YI.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    If the LVR is 80% of current value then there will be no reason why the Bank needs quotes.

    If however it is 80% of post work valuation then it is likely the Bank will want to pay the funds out directly to the tradesman to ensure the work actually gets done.

    All in all your Broker should be able to sort it out for you.

    Richard Taylor | Australia's leading private lender

    Profile photo of wishfulwishful
    Member
    @wishful
    Join Date: 2007
    Post Count: 9
    Qlds007 wrote:

    If the LVR is 80% of current value then there will be no reason why the Bank needs quotes.

    If however it is 80% of post work valuation then it is likely the Bank will want to pay the funds out directly to the tradesman to ensure the work actually gets done.

    All in all your Broker should be able to sort it out for you.

    We are dealing with the bank directly.  Our LVR will still be under 80%.

    Does anyone know once you have the quotes does it need to go back to the credit assessment people again?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If quotes were a condition then it will go back to the assessor for sign off once the quotes are supplied – but they shouldn't need to reassess it all again unless there is a  long time between asking and the supply of the quotes – or if your situation has changed.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of wishfulwishful
    Member
    @wishful
    Join Date: 2007
    Post Count: 9
    Terryw wrote:
    If quotes were a condition then it will go back to the assessor for sign off once the quotes are supplied – but they shouldn't need to reassess it all again unless there is a  long time between asking and the supply of the quotes – or if your situation has changed.

    Terryw Do you know how long that usually takes?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    could be ages with ANZ. maybe 7 days or so.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Wishful as Terry has mentioned likely to be a good 7 working days but i cant believe they have asked for them in the first place.

    Doesnt sound like the Bank johnny who put the deal together for you has any idea.

    With No LMI quotes would not be a requirement.

    Richard Taylor | Australia's leading private lender

    Profile photo of wishfulwishful
    Member
    @wishful
    Join Date: 2007
    Post Count: 9
    Qlds007 wrote:
    Wishful as Terry has mentioned likely to be a good 7 working days but i cant believe they have asked for them in the first place.

    Doesnt sound like the Bank johnny who put the deal together for you has any idea.

    With No LMI quotes would not be a requirement.

    We are dealing with the bank manager at our branch.  He has said that it is what the assessment team want, I am unsure why.  I found it strange as well as we dont need LMI and we have been with the bank for yrs with no problems, we always pay on time.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    These days banks don't trust their clients with money. Usually a max of $10,000 is all they allow out without proof of where the money is spent. Often with ANZ a statutory declaration is all that is needed for small amounts, but if you tell them it is for renovations then they will ask for quotes.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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