Browse Forums Home Finance 1 Sep 28, 2014 2:59 pm Hi! It's been a long time since I've been in here, but now we are throwing around ideas to put in a pool. My question is, if you decide to put in a pool on your property, can you ask the bank to finance it by adding the amount you need for the pool onto your existing mortgage? If so, do you need to go through a whole other finance review for approval, and in which circumstance can they turn you down (i.e. if your income can't cover the new mortgage amount, or if they think a pool isn't technically part of a home, etc). And will they need a deposit (20% of the pool cost or something)? It might be relevant to know that because our broker made a mistake in our loan application, we are now stuck paying interest only on our mortgage since we moved in a year ago. We are however putting in extra so we have made a small dent in our loan, but I'm worried it won't look good to the bank if we haven't technically started paying down our mortgage and they might not want to add to it in that case. TIA! 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: Adding a pool to the mortgage? 2Sep 28, 2014 6:29 pm It'll all come down to the valuation. With any luck your home has increased in value since you've built it so when they revalue with the pool included you won't need to contribute anything to maintain the same LVR. As long as you can service the higher repayments there should be no problem.
That being said, my wife works for the bank so we've never had any drama with our loans. Not like some of the stories you hear on here. Re: Adding a pool to the mortgage? 3Oct 01, 2014 12:28 pm Our property hasn't increased in value, but would they do a new valuation of the home too, possibly based on how much it would be worth with a pool? I keep hearing that pools don't add much value these days though. 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: Adding a pool to the mortgage? 4Nov 11, 2014 9:06 am Hi, usually the bank will lend you the money based on the valuation - but they'll want to keep the same percentage borrowed, or at least not go over certain limits. Pools add value, but not necessarily the same as they cost - so a house with a pool may sell for an extra $30,000 on average in your area (for example) but may cost you $50,000 to put in. Or it could be the full value! Only way to find out is get the quote and plans and get a valuation done - did you use a broker? They should be able to get one done upfront for you with most lenders. Enjoy your pool - nothing beats it, even if it's just relaxing beside it and soaking up the sun! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Adding a pool to the mortgage? 5Nov 20, 2014 6:11 pm Hi, usually having interest only a loan and not having paid down the loan much will not be a factor in the bank's criteria for extending your home loan. As Rebecca (above) mentioned it will be based on your Serviceability (income, expenses and you capacity to meet the repayments with the extra amount borrowed for the pool) and capital (the Loan to value ratio which will be based on valuation and any funds that you will contribute). Hey, I am wanting to add a second toilet to my house, bit we have limited room. There is a hallway/entry that is never used, so was thinking this could be an option. Only… 0 4697 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 11731 Hi, I'm new to this forum so I hope I'm doing this post correctly. Please advise if it's not. I've just bought my place. The inground pool has a marble lining that has… 0 13657 |