Feb 06, 2020 6:40 pm
My wife and I are building a new home with Clarendon. We've just been through colour selections and we've got a few minor upgrades we'd like. Our construction loan has been sorted for some time and we've already had a letter saying draw down is ready.
Is anyone able to give me an idea what the finance options are to pay for the upgrades or do we just need to cut them if we haven't factored them in already? Is it usually easy to extend a construction loan by 10k or so, or are we better off going down the personal loan route and possibly doing a refi after it's all finished?
I thought info on this would be easy to find but my Google-fu and a quick search in this forum didn't work.
Re: Extending a construction loan?2
Feb 06, 2020 9:08 pm
Did you happen to include a provisional allowance for these upgrades in your tender?
The difficulty comes in revisiting the valuation (if necessary) you HAD a kitchen, now you have a fancier kitchen, hard to convince a valuer to increase it.
If valuation isn’t an issue (perhaps because you had a bigger deposit) then you can speak to your lender about increasing the loan but it’s starting from scratch almost.
Otherwise pepper money or others do reasonably economic personal loans and it could be rolled in at the end.
I always ask the builder up front what to allow for as an average provisional allowance for post contract variations and build it into the tender to avoid just this issue.
Good luck with the build, exciting part starts soon!
Property crazy expert mortgage broker, love building new homes!
Two Red Shoes mortgage broker
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NonameLand Loan first and Construction Loan Later (Does it work?)Land Loan first and Construction Loan Later (Does it work?)
There isn't in this scenario.