Could someone please tell me how a constuction loan works? More imparticularly do banks value on the end value of the construction and work out the LVR for the purposes of the loan from that point?
I am looking to buy a house with a large block of land and subdivide then build another house. So will a bank look at the total end value of the development including the added equity created by the development therefore bringing the LVR below 80% and providing a loan then?
Thanks for any help.
Andrew
I am looking to buy a house with a large block of land and subdivide then build another house. So will a bank look at the total end value of the development including the added equity created by the development therefore bringing the LVR below 80% and providing a loan then?
Thanks for any help.
Andrew