Loan for Reno and Maternity leave

[imonmyway]

I have applied for 50k mortgage increase on my PPOR to make changes to our house, new bathroom, kitchen, outdoor area and opening up of back of house. I think I am going to struggle to have 50k in equity to keep below the 80% LVR. To further complicate this my wife will be going on maternity leave in November.

Am I better off getting a personal loan for 50k get the work done before she goes on maternity leave then get the house revaulued and get the mortgage increase to cover the 50k loan and pay the personal loan off with that?

 

[Bradsdad]

If the $50k is tight on the 80% see if you lender will get a valuation based on work to be done. You'll need to have quotes on the work to be done.

 

[Dragon]

I agree, and i cannot stress this enough, get your loan approved now before maternity leave.

Once maternity leave comes around and if you require your wife's income, then it won't happen until she returns to work.

Get quotes for the work to be completed, we can then use the end value of the property to work out the LVR.

 

[Buzz]

I agree whatever you do, do it now. You may even have it done prior to the maternity leave ie time for a new valuation.

If there is not enough equity currently your lender will let you know, it maybe wise to consider paying a few $,000's in mortgage insurance to get this done now.

Hope this helps
Jane

 

[imonmyway]

thanks everyone I was worrying for nothing the bank valuations came back better then expected so had enough equity to borrow what was needed