Browse Forums Home Finance 1 Mar 17, 2015 8:47 am Hi My land loan has been finalized with St George Bank. I am going for variable with package. As the land value has gone up I am paying a small deposit and no LMI for land loan. However now my concern is about the construction loan. I haven't applied for construction loan yet. If say my construction cost is 450000 then I need 90000 deposit to avoid LMI and if I can manage 90000 deposit for construction then can I keep land loan and construction loan separate without any further valuation? Or how it works? Any info or advice much appreciated. Re: Query about land and construction loan 2Mar 17, 2015 12:21 pm Hi Mansawant - they do a valuation on the complete package - what the finished house on the land is worth. If you have equity in the land and a large deposit for the build component it shouldn't be an issue for you. If the land has been settled for a little while there may even be an increased value in the land even after you settled. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building 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 18894 2 7166 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6632 |