Hi all,
I have a friend that was put on a business loan secured against his unencumbered property for the build cost of his H&L property. The bank manager informed him that the best option available was a Business Loan because policy has changed in regards to building a property with a common wall using a residential loan and other banks are also adopting this policy and he would have had the same outcome once they tried to process it.
1) I reckon that it is BS and the bank manager is just trying to earn more commission.
2) Even if it is true, he could have just done a cash out from his PPoR for the build at residential rate.
What do you all think. The bank is BankSA.
Cheers
I have a friend that was put on a business loan secured against his unencumbered property for the build cost of his H&L property. The bank manager informed him that the best option available was a Business Loan because policy has changed in regards to building a property with a common wall using a residential loan and other banks are also adopting this policy and he would have had the same outcome once they tried to process it.
1) I reckon that it is BS and the bank manager is just trying to earn more commission.
2) Even if it is true, he could have just done a cash out from his PPoR for the build at residential rate.
What do you all think. The bank is BankSA.
Cheers