New loan

[blackenator]

Hi all .. I wanted some advice on my situation , I am currently waiting for my land to register as I buying a block of land and putting a house on and going to live in it for 6 months so I can get the fhog. The total house and land package is about 480k - landscaping witch I am going to do myself.

The value of the land has skyrocked since I put the downpayment in september and secured my block similar house and land pacakges with my size house and block are going for 550k plus now. In regards to depsoit I will have about 30k once the land registers if the bank comes back and values the property at say 515k with the house and land does that lower my costs for lmi? How does valuation effect me?

 

[Aaron_C]

If it's gone up then you will be able to use that equity to lower your LMI, yes.

 

[tobe]

maybe. It depends on how long since you signed the contract, whether you need LMI and which lender you choose.

 

[blackenator]

If it's gone up then you will be able to use that equity to lower your LMI, yes.

Thanks for your reply does that equity add on as my deposit?

 

[Aaron_C]

Thanks for your reply does that equity add on as my deposit?

Effectively as the bank values collateral and cash the same. It means your loan can be bigger but your corresponding asset value would have gone up so the LVR can be lower.

 

[jonmardell]

How long ago did you sign the contract? If it is more than 12 months then you might be able to use the higher valuation. If it is less than 12 months most lenders will take the lower of the valuation or contract price.

Hi all .. I wanted some advice on my situation , I am currently waiting for my land to register as I buying a block of land and putting a house on and going to live in it for 6 months so I can get the fhog. The total house and land package is about 480k - landscaping witch I am going to do myself.

The value of the land has skyrocked since I put the downpayment in september and secured my block similar house and land pacakges with my size house and block are going for 550k plus now. In regards to depsoit I will have about 30k once the land registers if the bank comes back and values the property at say 515k with the house and land does that lower my costs for lmi? How does valuation effect me?

 

[Jamie M]

He/she paid a deposit in sept so only 7 months ago.

Cheers

Jamie

 

[Kapital]

Hi Blackenator,
If your valuation increases, then your LVR (Loan/Value) will decrease.
Which is good as you will need to borrow less funds. Are you asking what effect it will have on your deposit?

 

[Jamie M]

If your valuation increases, then your LVR (Loan/Value) will decrease.
Which is good as you will need to borrow less funds. Are you asking what effect it will have on your deposit?

Bank will sill go off the lower of purchase price or val - especially if contracts were signed less than 12 months ago.

Cheers

Jamie

 

[tobe]

^^^^^^^^^^^^^^

What he said.

Plus you most likely wont have a valuer agree the land has increased in value.

yes, the new blocks and new releases are selling at a higher price, but the valuer cant use developer sales for his comparables, he can only use second hand or re sale blocks. And there wont be enough of them to support a higher val.

 

[blackenator]

^^^^^^^^^^^^^^

What he said.

Plus you most likely wont have a valuer agree the land has increased in value.

yes, the new blocks and new releases are selling at a higher price, but the valuer cant use developer sales for his comparables, he can only use second hand or re sale blocks. And there wont be enough of them to support a higher val.

Thanks .

This is the first lot of land around this area its full of acreage properties and the suburbs next to it are million dollar listings. I am eagerly waiting to see what the banks come back with a valuation