Hi,
Got a tricky lending scenario and would really value some imput please:
Purchased a neat 1000sq.m corner block in new estate in regional area
(Postcode 2464), and built a house on 1 side of block. Have obtained council approval to sub-divide and create a second block.
Original plan was to use increased equity of unencumbered second lot to obtain finance @ 80% LVR to construct second house on new lot. But with cost blow-out (due to usual nit-picking of council, banks, builders, services plus other unforeseen stuff) has left us with a shortfall of about $30,000 funds to complete.
Had hoped to avoid getting UNSECURED personal loan but this may now be necessary. We could quickly pay this out from equity loan once sub-division was complete and still fall under the 80%LVR.
We tried smaller credit unions, but they were very nervous about 30k Unsecured loan, although their advertising says the opposite. Same for Newcastle Perm and The Greater Building Society. So, have realised it is back to the banks who are more risk tolerant I guess ....
Current loan for land and construction of House 1 is with Homeside - but they do not do personal loans??
So phoned NAB who said personal loan passed affordability, BUT they were not happy using it for Home Improvement (i.e. to complete sub-division) of property held by another lender. Why the heck not, if it is UNSECURED and can service?
Anyway, they did suggest that IF we refinanced House 1 from Homeside to them, they MIGHT go to their solicitors and see if they could get an end valuation of whole package - i.e. some sort of construction / + land loan with extra 30k thrown in up front to sub-divide then build house 2 - sounds vague to me.
Other problem is we do not want any wasted hits on credit file.
(Credit record is clean with no activity for past 7 months - but we did have lots of hits before that i.e. phone, furniture package etc, oh and Homeside did 5 hits for 2 loans!!! - we only used Homeside because broker put in the application although he was told to just check it out first with credit, so after that hit we figured we were stuck with Homeside). SO we are loathe to just randomly apply with NAB and have another hit only to be rejected.
Any thoughts?
Does anyone know of a lender that would refinance existing dwelling which is now at 90%LVR and that was a battle to get, (would not want to try for a higher LVR and there is not really any spare equity now) They would need to factor in end value of new land lot and give us 30k to complete???
OR I reckon simpler option is to get a personal loan, but which bank is more risk tolerant with using for home improvement/sub-division of IP with another lender.
Don't mind using a broker (although NOT impressed with last guy) but I thought brokers did not usually get personal loans.
AND I have heard that tricky scenarios like this are best dealt with by a branch manager.
Can provide income details etc if it would help. Have another IP with Westpac, but no equity there either, and do not want to use them (as they accidentally gave us a higher LVR than they should (TWICE!!
), and thus it is best they do not open our file for a while - long story)
Thanks
Seaview
Got a tricky lending scenario and would really value some imput please:
Purchased a neat 1000sq.m corner block in new estate in regional area
(Postcode 2464), and built a house on 1 side of block. Have obtained council approval to sub-divide and create a second block.
Original plan was to use increased equity of unencumbered second lot to obtain finance @ 80% LVR to construct second house on new lot. But with cost blow-out (due to usual nit-picking of council, banks, builders, services plus other unforeseen stuff) has left us with a shortfall of about $30,000 funds to complete.
Had hoped to avoid getting UNSECURED personal loan but this may now be necessary. We could quickly pay this out from equity loan once sub-division was complete and still fall under the 80%LVR.
We tried smaller credit unions, but they were very nervous about 30k Unsecured loan, although their advertising says the opposite. Same for Newcastle Perm and The Greater Building Society. So, have realised it is back to the banks who are more risk tolerant I guess ....
Current loan for land and construction of House 1 is with Homeside - but they do not do personal loans??
So phoned NAB who said personal loan passed affordability, BUT they were not happy using it for Home Improvement (i.e. to complete sub-division) of property held by another lender. Why the heck not, if it is UNSECURED and can service?
Anyway, they did suggest that IF we refinanced House 1 from Homeside to them, they MIGHT go to their solicitors and see if they could get an end valuation of whole package - i.e. some sort of construction / + land loan with extra 30k thrown in up front to sub-divide then build house 2 - sounds vague to me.
Other problem is we do not want any wasted hits on credit file.
(Credit record is clean with no activity for past 7 months - but we did have lots of hits before that i.e. phone, furniture package etc, oh and Homeside did 5 hits for 2 loans!!! - we only used Homeside because broker put in the application although he was told to just check it out first with credit, so after that hit we figured we were stuck with Homeside). SO we are loathe to just randomly apply with NAB and have another hit only to be rejected.
Any thoughts?
Does anyone know of a lender that would refinance existing dwelling which is now at 90%LVR and that was a battle to get, (would not want to try for a higher LVR and there is not really any spare equity now) They would need to factor in end value of new land lot and give us 30k to complete???
OR I reckon simpler option is to get a personal loan, but which bank is more risk tolerant with using for home improvement/sub-division of IP with another lender.
Don't mind using a broker (although NOT impressed with last guy) but I thought brokers did not usually get personal loans.
AND I have heard that tricky scenarios like this are best dealt with by a branch manager.
Can provide income details etc if it would help. Have another IP with Westpac, but no equity there either, and do not want to use them (as they accidentally gave us a higher LVR than they should (TWICE!!
), and thus it is best they do not open our file for a while - long story)Thanks
Seaview
