Low valuation

The first valuation, was that before you signed the contract?

Once you pay for something that largely determines the valuation. So getting it for so low would mean it is really only 'worth' that much.

Did this valuer provide comparable sales?

Banks can only use valuations if the valuer is on their list and the valuer has been instructed by the bank. Speak to a broker who may be able to use a bank that allows upfront vals such as ANZ or Homeside.

I would say solar panels would not impact in the valuation at all.

extra garage space with roller door- minimal

high ceilings – depends on the house

roof – hardly anything unless structurally unsound or damaged

Your extra 60 sqm of living though in the main house should have influenced the valuation as valuers work on a combination formula of land size/$ per meter squared, living and undercover area size.

You might even be better getting a desktop valuation.

For example bought the absolute worse house for low 400,000s on street that was selling homes for 550,000 plus and a desktop valuation with another bank after i said i had renovated it. (Think i cleaned the gutters and some gardening) came in at 500,000.

Lots of banks do 95 % lends. Pretty much all the big 4. I personally wouldn't be using Macquarie bank and perhaps your broker is using them because their commissions are higher.

Im just trying to understand when you say you want 70k in equity and a 280k loan.

if you lend up to 95 % with LMI capped at 2%. And you get your house revalued to what you believe is around the 360k mark. then youll have a loan off approx 350k With 70K in equity that you would then use as cash for a deposit on a new property.

You wouldnt be able to have a 280k loan with 70k equity. Your refinance only lets you borrow your equity.

or are you saying You want your New loan for your new property to be around 280k. Time to wait for some posts from the brokers on here so you can get some better advice!

Hi Hannah

If your property is valued at $350k and you have a loan of $280k – you have $70k in actual equity, but the bank won't allow you to access this.

The max some banks will go up to is 90% of the properties value (in rare cases it's 95%). 

So in this instance, a $350k valuation means you may be able to access $35k – which is why your broker has mentioned a 95% lend for the next purchase.

There are a heap of lenders that do 95% investment lends – you are not just restricted to Macquarie.

Cheers

Jamie

Very hard to get a loan increase to 95%

Personally, here's what I'd do.

Step 1: Contest the valuation.

Step 2: If step 1 fails, order a valuation via another lender (it needs to be an upfront valuation so you don't receive another hit to your credit file).

Step 3: If you get a $350k valuation, take the loan up to 90% LVR and do the $35k equity release. Release mums property at the same time. It's rarely a good idea mixing the folks assets in with your investing plans.

Step 4: Take out a 95% IP lend for the $280k property (using the $35k from step 3 as the deposit/costs). Look to use a lender with a Direct Underwriting Authority (DUA) with the mortgage insurance provider as 95% IP lends aren't the easiest to get across the line. If your borrowing capacity permits – CBA could be a good option here.

Cheers

Jamie

No worries.

A good start would be a residex report or similar. Something that provides some comparable sales within the area. Your broker might have access to these.

Cheers

Jamie

Its a system val meaning they enter the information about the property and it splits out a report. Most likely that the valuation the bank will require is a 'Full Valuation'. If you have done renovations then it will definitely need to be a full val.

By now you should have contested the val whilst concurrently ordered a couple of upfront vals.

Regards

Shahin

Desktop's are statistical estimates based on comparable sales within the area. It's a system generated report that doesn't take into account the improvements you've made to the property.

Cheers

Jamie