Browse Forums Home Finance 1 May 01, 2013 3:36 am Are you able to use home loan to buy furniture, tv, etc. when building a house? For example, building a 500k house, but getting a 550k loan and using the extra 50k for home theater, furniture, bedding and other stuff. Is that possible or does any lender allow it, how does one go about it? Thanks Re: Using home loan for furnishings 2May 01, 2013 9:08 am I wouldn't do it- you'll pay may times more in interest than what you paid for the furniture (yes your home loan is only 6% (or whatever) but it's spread over 25-30 years) Re: Using home loan for furnishings 3May 01, 2013 2:49 pm Yeh, I will pay more in interest, but the costs of all the extras will be too much to buy upfront. So I want to have everything with the new house and in a couple of years time I may be able to pay everything off anyway. The question is if banks even allow for this to happen. Re: Using home loan for furnishings 4May 01, 2013 3:14 pm The bank may allow it if you have available equity in your property. They will not allow it if there is no equity as it is not adding value to the property. As PP commented it really isn't a good choice financially as the debt is accruing over a 25-30yrs term. Some things are worth waiting for. Re: Using home loan for furnishings 5May 02, 2013 11:03 pm If you have equity in your property and can go to 80% LVR then yes you can. Some banks with have restrictions in terms of the cashout amount. Shouldn't have any issues if you are with one of the majors. Re: Using home loan for furnishings 6May 05, 2013 9:49 pm Hi all, I have a similar question however was thinking of items to be completed after handover, for eg. Fences, Landscaping, Driveways, Pools etc. Can this be borrowed against the mortgage considering it will be adding value. In regards to the original post, I would suggest using the Interest Free periods with Department stores, for eg you can sometimes get up to 3 or 4 years worth of Interest Free finance which is well worth it. The catch is you must pay it off in this time to ensure you don't get stuck with sometimes up to 50% Interest. Thanks in advance Re: Using home loan for furnishings 7May 10, 2013 8:53 pm debz, we got landscaping and security screens included in our loan. It was just too much for us to pay for our of our own pocket, and it's stuff we want/need done right away because of both safety and estate covenant rules. We just had to provide the bank with quotes from the suppliers we're planning to use for the items, and they put those amounts into our loan. Best of luck! Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Using home loan for furnishings 8May 15, 2013 6:16 pm Our mortgage broker said if we had specific items and quotations eg - spa, paving, fencing and gave them to her now we could get them paid out directly by the bank to those companies direct so it is worth getting the quotes now. https://forum.homeone.com.au/viewtopic.php?f=31&t=64434 Building our own custom design based on the Elwood by Dale Alcock Land settled - November Plans submitted to council - January Prestart - March Slab - 18 September Brickies - 23 October 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 19787 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35891 Broker here - legislation says that every true broker must put the clients best interests before theirs so in theory they must offer you the best options for you on their… 2 46327 |