Renovation finance

[Marty McDonald]

One possible Solution:

Instead of applying for an construction loan, just apply as an improvement/renovations refinance ...now not a lot of banks will allow the valuer to bring the value up based on "future improvement" however i done this a few times in the past and i know this feature is offered by ABL ( Adelaide bank) and ING ( tend to be more strict) just to name the top 2.

In this case both lenders, lend up to 90% of the total value of the subject property taking into account all improvements.

The bank will get the valuer to value the proposed improvements ( simliar to a construction loan) and that will provide a total valuation amount.

really, pls explain how you can take end value / as complete val without a construction loan process....I don't think it's possible.

 

[Mick C]

It was done Via the mortgage manager's channel, so not ABL or ING direct but via their funding lines. - the mortgage manager's allow their valuers to take in "proposed" renovations into the val...as long as we submit the quotes to the valuers before hand - the way it works is it will influence the way the valuers look at the property + it's noted in the val.

Regards
Michael

 

[Marty McDonald]

Thanks.. interesting