2+1 GF Loan

[blessme]

Hi All,

I wanted to build 2BR GF + Studio GF on the established property. I've checked with the builder and the council and they allow me to do that. The problem that I have is the Construction Loan. Based on my past experience CBA allowed me to borrow up to 95% to build a GF. I tried to submit my loan application for 2BR GF + 1 Studio GF and they don't allow it and they told me if I want to do it then I need to take commercial loan instead (80% LVR, higher interest rates). Anyone ever facing the same problem as me?Any idea of which bank that can borrow me up to 95% for 2BR GF + 1 Studio?

 

[neK]

I don't see how you can legally build a 2 bedroom GF + Studio GF on the same site.

Granny Flats are secondary dwellings.

With the existing property, that would make 3 dwellings which would be illegal.

Now if you were sneaky you could could 2 Bedroom GF + Studio GF and call it one. But the issues i see are:

1. Each GF would be really small.
2. You couldn't lease both out independently legally.

 

[Rolf Latham]

Seek broker advice after getting advice on council or certifier

its is possible to build 3 on one title with a couple of lenders. cba insnt one of them though

New lmi would have to be paid : (, and max refi lvr 90 % + cap mi probably

Price of lack of planning or changing mind I guess.

ta
rolf

 

[Mick C]

Hi All,

I wanted to build 2BR GF + Studio GF on the established property. I've checked with the builder and the council and they allow me to do that. The problem that I have is the Construction Loan. Based on my past experience CBA allowed me to borrow up to 95% to build a GF. I tried to submit my loan application for 2BR GF + 1 Studio GF and they don't allow it and they told me if I want to do it then I need to take commercial loan instead (80% LVR, higher interest rates). Anyone ever facing the same problem as me?Any idea of which bank that can borrow me up to 95% for 2BR GF + 1 Studio?

Applying for a GF construction loan over 85% is only possible if you have a full buildings contract with progress payments...Else you will struggle to get a approval - CBA or not.

If your file is strong, they can approve the loan as a "improvement renovations loan" and the valuation will be based on end value...but not at 95%.