Browse Forums Home Finance 1 Mar 17, 2015 8:47 am Hi My land loan has been finalized with St George Bank. I am going for variable with package. As the land value has gone up I am paying a small deposit and no LMI for land loan. However now my concern is about the construction loan. I haven't applied for construction loan yet. If say my construction cost is 450000 then I need 90000 deposit to avoid LMI and if I can manage 90000 deposit for construction then can I keep land loan and construction loan separate without any further valuation? Or how it works? Any info or advice much appreciated. Re: Query about land and construction loan 2Mar 17, 2015 12:21 pm Hi Mansawant - they do a valuation on the complete package - what the finished house on the land is worth. If you have equity in the land and a large deposit for the build component it shouldn't be an issue for you. If the land has been settled for a little while there may even be an increased value in the land even after you settled. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building 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 20065 Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 723 2 7418 |