What bank allows you to borrow money to buy a house, then renovate the property, then get the bank in to revalue it in about 2 months, then borrow the new improved value?
All depend on 101 things – Initial lvr (if mortgage insured gets a lot harder) / sales evidence etc etc etc
We have done it for clients fairly regularly and often works best where the initial lender does an in house valuation and then the borrower is happy to pay for a full valuation from a panel valuer.
Course sometimes borrowers gets disappointed that the valuer doesnt agree with them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If everything looks good, 80% LVR, sales evidence etc, are all banks happy to do the revalue within only a couple of months or do some banks have a policy where they just don't care and I must wait 12 months?
No not all lenders will allow this irrespective of the lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:No not all lenders will allow this irrespective of the lvr.Cheers
Yours in Finance
Hi Richard
Which banks have there own in house LMI at 95% and would do a refinance within a couple of months if all boxes are ticked?
ING Direct (you can go direct or through a mortgage broker) have a product called "Redcued Equity Fee" (REF) this is where they will self insure (not go to mortgage insurance) for purchase loans up to 95% LVR. This is also cheaper then going to either Genworth or QBE mortgage insures. On this product they will also allow you to increase your loan back up to 95%.
I work at a Mortgage Manager and one of our funders is ING Bank, we will allow you to increase in 3 months, sorry not two.Another option to save you on valaution cost, is to request for a valuation that is "As if complete" this means that if you have a build contract of quotes for the work you want done, we can submitt that to the valaution and he will value the property has if the improvement on the property have been completed. The finder will want the improvement however to from the loan amount 95% of the property with the work done) and they will want to pay the builders/trafies directly. This will however save you time and money. Only of course if you are not doing the work yourself.
Requirements for the REF policy are: clear credit (no defaults), at least 2 years in current employment and must have genuine savings (this is money that you have saved. No money coming from First HOme Owners Grant ect. only 5% required)
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