releasing equity and valuations

[onthebus]

Hi - newbie here and wondering if anyone can help me out ... I'm about to submit an offer for an investment property. I got a pre-approved loan with the CBA about 8 months ago for $150k, which has recently been re-assessed and they are happy to now lend me about $130k considering interest rises since my loan was originally approved. It is a low doc loan, which means I have to provide a 20% deposit, which will be about $30k if I buy the property I'm interested in for $150k. Currently my principle residence was valued at $280k 8 months ago, when I refinanced and applied for the investment loan. Now, it would probably be worth about $300k and I have an existing loan of around $206k. The properties will be on seperate loans but cross collaterised (I'm okay with that) and the bank will allow me to put $18k from my principle residence's equity towards the deposit (to bring it back up to the 80% lvr). I'm really scratching around for the extra $12k cash for the deposit, so what I want to know is can I get my house revalued and more equity released without having to re-apply for the loan? I've been told you can get another valuation done after 6 months have passed, if you have made substantial improvements, which I am in the process of doing. I have asked the bank manager about this in the past, and she seems nervous about doing another valuation and thinks it would require going through the whole loan process again, (which I can't do as I know my financials would not stack up now). Sorry if this all sounds a little confusing - I'm new at this - learning, learning, learning... Would appreciate any advice here. Thank you.

 

[Rolf Latham]

Hi OTB

LUV the nick very appropriate

The reason they may be concerned is that Lo doc policy has been changing..............and a new valmay trigger a new loan review, and a possible decline .maybe?

Must u have a lo doc facility or has that puppy been sold to you as a more "simple" approach ?

ta
rolf

 

[onthebus]

Thanks Rolf. Yes unfortunately, I can only get the low doc loan. Another thought... Once I've bought a property and the loan is settled, is there any way of accessing cash from a valuation then? My loans are the no frills / economiser loans. I think I can apply for a larger loan, but I won't get it on account of servicibility. Thanks again for your reply.

 

[Rolf Latham]

Hiya

depends on the lender.............but if you cant service now, thats probably only going to get worse as rates go up.............

ta
rolf

 

[Spectre]

Reason shes nervous is probably because she knows you're going to have to jump thru heaps of hoops to get a low doc over 60% with cba.
CBA told me quite candidly they're not keen on low docs at all. IMO I'd cash out of cba as much as possible and bring in a new lender

 

[Token Funder]

*snip*
. I have asked the bank manager about this in the past, and she seems nervous about doing another valuation and thinks it would require going through the whole loan process again, (which I can't do as I know my financials would not stack up now).
*snip*

You know this means you should wait until they do, right?

 

[RumpledElf]

We're in much the same situation but need 60% lodoc not 80%. And we're doing what token funder so nicely points out - just saving up more money, and/or attempting to sell my old house, which frees up oodles of cash.

Can't rush these things, as much as we'd like to ... baby on the way and we're in a tiny 3br house. And we're going to be staying here for a while yet.