How soon after settlement will CBA accept a reval?

It seems all the banks are being conservative when it comes to cash out to be used on another property that won't be financed with them.

I even found this when looking to cash out to only 80% LVR, had such a hard time with NAB about it. Firstly was told that we couldn't do it at all, then only after talking to the higher level manager were we permitted to set up a second loan secured against the same property to pull the LVR up to 80%. They also wanted all sort of information about what we wanted to do with the extra cash. We were told that this sort of thing was "very unusual", yeah right. It seems the usual cause is to just take out anothermortgage with them for your other IP, can cross-collaterise like crazy. Yeah right.
 
On a related note, has anyone been successful with getting an initial valuation that was higher than the purchase price?

Within what time frame? I got a higher val on a place last year 15 months after purchasing it, but don't think that is what you really want.

Regards,

Jason
 
Within what time frame? I got a higher val on a place last year 15 months after purchasing it, but don't think that is what you really want.

Regards,

Jason

I was talking about the initial valuation to get the first loan. For example if you brought a place for 200k but when applying for financing the valuation comes back at 250k. I was under the impression that the valuation will always come back at the purchase price but have heard rumours about people being able to obtain a higher valuation and being able to extract equity straight away, all without any rennos either.
 
I was talking about the initial valuation to get the first loan. For example if you brought a place for 200k but when applying for financing the valuation comes back at 250k. I was under the impression that the valuation will always come back at the purchase price but have heard rumours about people being able to obtain a higher valuation and being able to extract equity straight away, all without any rennos either.

It can happen but the bank will only lend on the lower of valuation or contract price...
 
Ive had lenders use val instead of purchase, but only where the purchase was favourable, or when the settlement happened 6 or 12 months after contract date. All under 80% so no LMI involved.
 
I was talking about the initial valuation to get the first loan. For example if you brought a place for 200k but when applying for financing the valuation comes back at 250k. I was under the impression that the valuation will always come back at the purchase price but have heard rumours about people being able to obtain a higher valuation and being able to extract equity straight away, all without any rennos either.

The problem is the valuer is going to look for comparable sales. The most comparable sale within 3 to 6 months of purchase, would be the purchase itself. The valuer would then have a lot of trouble arguing a diferent valuation amount unless the market was on fire, or there were significant changes to the property. Whats in it for the valuer to increase the valuation amount? he or his insurance, can be sued by the lender if he is 10% out on the val, so why would he stick his neck out?
 
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