Browse Forums General Discussion 1 Feb 15, 2021 10:38 am Hi all, My husband and I have a house. We want to purchase land and build a duplex. Our house doesn’t have much equity. We do have a 5% cash deposit towards the duplex loan. Has anyone found a lender who lends up to 95%. Also can you get a loan with a clause of selling one of the duplexes upon completion? We are going to do a strata title to seperate the titles to sell them seperately. We want to live in one for a year then sell that one aswell. Just wondering how we go about getting 1.5mill finance without having to sell our home we are in now?! We owe under 80% to the bank.. Re: Duplex construction loan 2Apr 14, 2021 6:24 pm Hi Elyse32, By now, perhaps you've already received your answer, but here I go... It depends on the LVR - I believe a lot of them do 80% (Loan to Value Ratio). When you fill in your application for your construction loan, you'll find they will want to see the value on all of your assets and liabilities (eg. all properties, vehicles, personal belongings, existing mortgage payments, rent, monthly spend, etc). Once that's done, they'll then see what your assets value add up to be and determine the LVR. So in order to obtain 1.5mil on an 80% LVR, your assets will need to tally up to 1.875 mil at least. If you come up short, you'll have to front the difference with the builder or prove to them you can cover it by giving them a snapshot of a bank account with that money. I know some people open a new bank account for this purpose so they can keep their existing personal accounts private. Some builders will ask you to place the delta of funds into an escrow. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19114 Even if it's not being sub-divided and you want to keep it as Torrens title, you will still need to talk to a town planner or Council themselves, to see if they will allow… 1 11039 Give Jonathan a call. Tell him you know me. He is in my opinion the best surveyor I have ever worked with. His number is 0425 285 622 All the best Simeon 3 12423 |