Should I get the banks permission before I build an approved house

I am wondering if I need the banks permission to build my DA approved seperate house on the back of my current PPOR?
I know I should however I have been told by my mortgage broker and friends who are in the finance/property business not to tell them until after the property has been built.
This is because they say I will have to jump through a million hoops and answer a million questions concerning the new dwelling and after all of this they may not give me permission to build.
I have enough equity in an offset account to build without having to apply for a bank loan.
What should we do or has anyone had any experiences similar to ours.
Thankyou for any advice.:confused:
 
I would not tell them, BUT, if they find out will they pull the offset money??
Could you withdraw the offset amt, not all , just enough to secure another mortgage with another lender??? others here might know better ?
 
I would not tell them, BUT, if they find out will they pull the offset money??
Could you withdraw the offset amt, not all , just enough to secure another mortgage with another lender??? others here might know better ?

Are you thinking of a Line of Credit??

Am pretty sure your offset account is off limits??


Cheers

Rooster
 
hi,thanks to all for your replies,i have the money in an offset account,its been there for a few months,so i can basically do what i like with it,but yes that was my concern,them pulling the off set amount,particularly as i am going owner builder.im not sure what they will do if they find out that im going to build,but will it really matter when they find out and the house is already finished?it was hard enough trying to get money when i was using a builder,waited 3 months only to be told yes,we will lend u half the money,which wasnt enough,so i dont want them stuffing up my project again!
keep the feedback coming please,i need to make decision really soon!:eek::eek: thanks all
 
I am planning on doing the same thing with my PPOR.

No way will I tell them until I am finished and ready for new titles to be issued ..

If you have mortgage insurance ..borrowing over 80% - this will be a real nightmare if you tell them first.

You do the right thing and you will regret not having an oversight.

just MHO

cheers

RightValue
 
i was also worried about them finding out and mayb foreclosing/ calling in the loan,but i suppose its not like they are going to drive past and check!
 
Unless any changes are made to the title they won't know. Bank staff don't even do the valuations or inspect the property in the first place..

Look at it this way.. if they were likely to call the loan for you increasing the value of the property then why didn't they call the loans of all those properties that they know lost value in the recent downturn??

Even if they do that .. there is a process that takes months and months.. by then you will be finished.

Still .. if it gives you peace of mind .. go right on ahead..... it's your sanity.

cheers

RightValue
 
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