Browse Forums Home Finance 1 Apr 16, 2009 3:42 pm Hi guys So we owe another $35,000 for the block of land. The bank will only lend us 80% of the value of the block. They've just evaluated it at around $365,000 and will only lend us $270,000 (including what we owe for the land). This only leaves us with $235,000 which is not enough They said that once the house is almost done we can borrow another $100,000. But then, even that might not be enough :S I'm sure people have borrowed a lot more money with minimal deposits, yet we've got a $365,000 block of land as kind of a deposit and we can't get more money ahhhhhh. So depressing By the way, we have decent salaries and can afford to borrow more money Re: Why won't they lend us more money :(((( 2Apr 16, 2009 4:42 pm So only 80% LVR and they valued it much lower then expected? First would be to see WHY they valued it lower, and to also apply through another bank and see if they give a better valuation. Re: Why won't they lend us more money :(((( 3Apr 16, 2009 4:48 pm yeah - it's been a bit strange out there. a couple of years ago, keeping LVR at 80% wouldn't have been an issue. I can't offer much advice - we ended up getting a valuation $200k lower and having to come up with extra funds ourselves perhaps thlo can answer your question. After 4 years - we're in! Re: Why won't they lend us more money :(((( 4Apr 16, 2009 8:36 pm gettingThere Hi guys So we owe another $35,000 for the block of land. The bank will only lend us 80% of the value of the block. They've just evaluated it at around $365,000 and will only lend us $270,000 (including what we owe for the land). This only leaves us with $235,000 which is not enough They said that once the house is almost done we can borrow another $100,000. But then, even that might not be enough :S I'm sure people have borrowed a lot more money with minimal deposits, yet we've got a $365,000 block of land as kind of a deposit and we can't get more money ahhhhhh. So depressing By the way, we have decent salaries and can afford to borrow more money Sounds odd but we'll get to the bottom of this one too Which bank and postcode (of your land)? Re: Why won't they lend us more money :(((( 5Apr 16, 2009 8:43 pm Ahhh turns out that the reason why they won't give us more money is because we are not getting a construction loan but instead an investment loan. This was to avoid the hassles of providing them with all the quotes in advance and then paying them for inspections at different stages of the loan. The person looking after us emailed me today and said we can get $255,000 on top of what we currently owe, and then once we're at the lockup stage they can lend us another $100,000 or so. Does this sound correct? :S hopefully 355,000 for the house will be enough, it better be! Home Loan Tips 6Apr 16, 2009 8:55 pm It's sounding like an owner builder loan. 80% max sounds about right for that. As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27628 I've just had a look at the website. The company are just building broker's. There are plenty of similar companies that basically draw your plans (they own them so you… 8 11665 That sucks! Hope it all works out. Good to move away from steel anyway for all your reasons, but it's also thermally poor. 16 18279 |