Hi,
Purchased home on 14/10/2011 for $447K with a 10% deposit. After costs\LMI the total loan is $409k. It's an Interest only loan with Bankwest.
When taking out the loan I told my broker that we are looking to build a granny flat at the rear of the property as it has back lane access and a construction loan was mentioned to be an option for this based on the value post construction.
Now I have asked the broker to go ahead and look into the construction loan and he tells me this...
Is it possible to refinance to a lender that could do this (are there any?) and are there any refunds on LMI or would I have to fork out for it all over again?
I'm not really sure how to compare the numbers to evaluate this so any info\suggestions would be very much appreciated.
Thanks.
p.s either way should I be looking for a new broker or have I been unrealistic to assume this would ever have worked?
Purchased home on 14/10/2011 for $447K with a 10% deposit. After costs\LMI the total loan is $409k. It's an Interest only loan with Bankwest.
When taking out the loan I told my broker that we are looking to build a granny flat at the rear of the property as it has back lane access and a construction loan was mentioned to be an option for this based on the value post construction.
Now I have asked the broker to go ahead and look into the construction loan and he tells me this...
"I don’t have good news and been trying to think of another way to do this.
It appears since we initially worked all this out the mortgage insurer that Bankwest use have stop doing Granny Flat constructions. What this means is Bankwest would do it as a 80% LVR but not higher than this, and that’s 80% across the existing home and the granny flat construction.
With your existing home worth $447,000 plus $90,000 (estimate after talking to draftsman and builders) for the Granny flat (total $537,000) the total loan could only be $429,600 and you are at $409,000 now so you would have to tip in most of the cost of the Granny Flat construction, the bank would only fund about $20,000 of it. "
Who does Bankwest use for LMI and would they ever have done this or is it possible that the broker is just saying that to make it appear as though he looked into this in the first place rather than just assumed it would be ok?It appears since we initially worked all this out the mortgage insurer that Bankwest use have stop doing Granny Flat constructions. What this means is Bankwest would do it as a 80% LVR but not higher than this, and that’s 80% across the existing home and the granny flat construction.
With your existing home worth $447,000 plus $90,000 (estimate after talking to draftsman and builders) for the Granny flat (total $537,000) the total loan could only be $429,600 and you are at $409,000 now so you would have to tip in most of the cost of the Granny Flat construction, the bank would only fund about $20,000 of it. "
Is it possible to refinance to a lender that could do this (are there any?) and are there any refunds on LMI or would I have to fork out for it all over again?
I'm not really sure how to compare the numbers to evaluate this so any info\suggestions would be very much appreciated.
Thanks.
p.s either way should I be looking for a new broker or have I been unrealistic to assume this would ever have worked?