Browse Forums Home Finance Re: Renovation - line of credit vs construction loan 6Feb 09, 2012 11:20 pm Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Renovation - line of credit vs construction loan 7Feb 11, 2012 10:19 am Michael, Thanks for your great advice. Yes, loyalty is not something banks value highly. The stamp duty is the piece which has really stuck in our throats. It felt like profiteering, and your advice confirms this is the case. We're not trying to exceed a $200k line of credit - we just don't want the bank to hit us up with fees for allowing us to access it. We're quite happy for the loan to be split $250k construction loan and $200k line of credit. (Certainly not interested in going beyond the 80% level and incurring mortgage insurance, that's for sure.) We spoke with a financial advisor yesterday about structuring loans and finances, and she advised us to check ANZ and Westpac. They were somewhat helpful, but not greatly different to CBA - certainly not enough to switch banks. Then we checked in with Bankwest, who seemed really helpful and willing to be quite a bit more flexible in their approach. (Funny, given they are owned by our current bank, CBA.) Indeed, the Bankwest advice seemed to reinforce that who you're speaking with at a finance provider is as important as the provider itself. The person we contacted seemed switched on, savvy and understood her products. As always, the best sales people understand their products inside-out. Again, Michael, thanks so much for your advice. I'm about to go and check out your web site! Renovating in Sydney, Australia. Blog: naiverenovator.blogspot.com.au 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 4 10824 Hi everyone, Looking for some advise. We are about to build an above ground pool in our backyard. There is a private sewer line running under the pool at 1.6m… 0 11764 |