Accessing equity?

[strongy1986]

So we bought a place which we are currently renovating and I think it will be worth substantially more than what we paid for it when finished.

The house was purchased using 20% deposit from a line of credit and the rest using a fixed interest only loan using the house as security

How easy/ hard is it to get the house revalued and set up another line of credit when the house is already used as security on the fixed loan?

Thanks

 

[D.T.]

Fixed loan isnt really a problem.

Say house was bought for 500k using 400k fixed loan.
House is now worth 600k and still has 400k fixed loan. Get a 80k LOC on top and you're golden.

Use this towards deposit to go again

 

[Rolf Latham]

To add to DTs good post

Subject to serviceability for that lender AND their valuer agreeing with you.

Often, in the scenario described we would recommend staying with variable until the reno is done, because the risk of getting a poor val from an incumbent is quite high -if your loan is variable and at 80 % its relatively easy and cost effective to move to a lender that has a more sympathetic valuer.

ta
rolf

 

[jim1964]

Fixed loan isnt really a problem.

Say has was bought for 500k using 400k fixed loan.
House is now worth 600k and still has 400k fixed loan. Get a 80k LOC on top and you're golden.

Use this towards deposit to go again

Your a smart boy Dave,you must drive a Ma......380

 

[Singo]

Your a smart boy Dave,you must drive a Ma......380

All here know that. DT won't mind hearing it being said though

 

[D.T.]

Your a smart boy Dave,you must drive a Ma......380

Not anymore