Decreasing deposit to afford Reno costs

we are looking at a place for about 300k that needs a bit of work. I think it will cost around 15k to do up.

I would prefer to do a 10% deposit but if we do this funds will be very tight for a renno and im afraid the bank will say no.

All our loans are with the one bank and our current LVR is 80%

I have heard that it hurts your credit file to go over a 90% lend? Do banks look at your overall LVR or do they take into account past deposits less than 20%, 10% when assessing FUTURE credit applications (after this house)

Also if we hit a credit wall with a bank after buying a place and doing a renno. Does this mean to access the equity after the renno we would have to refinance with a more leniant bank?
I have heard that it hurts your credit file to go over a 90% lend?
Not really - if the lender doesn't have a DUA with the LMI provider you might receive two hits to the file at once when applying - one from the lender and the other from the mortgage insurer.

Agree with CJay - why not release equity in another property?


many lenders score isnt hot with total LVR > 90

some lenders that have a Delegated Underwriting Authority with their insurer lose that nicety above 90 %

if you are a solid credit risk, with rental income less than 50 % of total income, only one or 2 credit enquiries in the last 12 mths, and a few other things then over 90 % wont bother you.

As wisely suggested by others spread the love a little and do a top up or 2 with existings if thats workable