My wife and I are looking to build our next house in the coming year, but would like to do so based solely off my income alone. We have recently had a baby and we would like to have my wife stay at home with the baby for a while, so she will not have a job at the time we apply for a loan.
The land we are looking to purchase is roughly $375,000 and the house we want to build is also around $375,000. We currently have no home loan and $165,000 in the bank. But we do have a personal loan of around $45,000.
I've done an initial serviceability test and have qualified for around a $630,000 loan. However, just in case we may need to spend more than the $375,000+$375,000+stamp duty+misc. I'd like to be able to qualify for more. If possible, I'd like to avoid paying LMI.
Is it possible to increase my borrowing power by consolidating my personal loan into the land loan?