Browse Forums Home Finance 1 Aug 17, 2015 12:35 pm We currently have a mortgage on our house. Once we sell, we will have enough to have paid for most of the block of land (about 85% of the 270k for the land). Within reason obviously, based on our incomes and what we can technically be lent, how much will the bank lend you? Base house price is 280k but with all the upgrades, alterations, landscaping and having everything completed eg driveways, curtains etc, as well as the rest of the land, we'd be wanting to borrow approx 450-500k. Houses in this new estate are currently selling for 600-700k. So if we were to only borrow 450-500, this would work wouldn't it? Re: Can we choose how much to borrow? 2Aug 17, 2015 1:20 pm Hi, yep obviously subject to approval criteria but you can choose to borrow 80% of the security value - for example - and have the rest of the money in an offset account for future purposes (saving interest at the same time). Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Can we choose how much to borrow? 4Aug 17, 2015 3:18 pm Ahhh, well the value is the value of the land - presently thats the security for the loan and the rest of the money would be anything you hadn't used for the purchase, so if you have roughly 85% of value of the land but you borrow a bit more than the 15% you estimate you'll need - I assume you'll have money left over? Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Can we choose how much to borrow? 5Aug 17, 2015 3:53 pm Yes, if we borrowed 500k, 50k of that would go towards the land and the other 450k on the build. We would also have about 40k in savings to keep on offset. Or would it make better sense to borrow less and put more savings in? Re: Can we choose how much to borrow? 6Aug 17, 2015 3:59 pm Its plusses and minuses - without knowing your full position - you can't borrow more than the value of the land until the build starts but thats ok, easy to work out. I would keep under the 80% mark if I were you simply because it saves you mortgage insurance and then it comes down to how you want to structure it and your repayments. what area are you building in? Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Can we choose how much to borrow? 7Aug 17, 2015 4:06 pm Under 80% of the value of the land? That wouldn't even build the house never mind anything else so if the land is 270, we could only borrow 80% of that? Even though we'd only owe 40-50k on that land? Sorry I'm confused We're in the Lower Hunter in NSW. Re: Can we choose how much to borrow? 8Aug 17, 2015 4:37 pm Yep 80% of the land then you can borrow 80% of the build as a construction loan when that starts. I can give you a great broker n Toukley if that helps. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building I thought this would be a popular question but I haven't been able to find any similar posts. Perhaps I'm wording my searches wrong? When you have car insurance and the… 0 6981 They make the room much easier to clean for one, reflect more light (if light colour tiles are used), and you dont end up with dust on the top edge of tiles (cause most… 3 10142 Porcelain Benchtops have been trying to get into the Australian market for many years but have had no luck until the Silica Ban. They do contain Silica but only on a low… 1 1896 |