Browse Forums Home Finance Re: Construction loan with 88% LVR 2Apr 28, 2021 8:52 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Construction loan with 88% LVR 20Apr 30, 2021 12:06 am It's possible that even though you can service the loan, you may not service at the stressed rate. The stressed rate is a "shadow" interest rate you get assesd against to simulate a scenario where interest rates have grown exponentially. This is usually in the vicinity of 2-3% higher than the rate you're applying for. 100k more lending is not insignificant and I imagine that your DI ratio isn't great if after a year you've not been in a position to save a decent stack of cheddar to add to your purchase to offset the costs further. if you're borrowing at lvrs higher than 80%, your risk profile is increased. Investors and high lvr borrowers are usually the first to feel tighter credit policies when banks change them. In anycase. Move on, get a different lender. Considder non bank lenders and then shop around when your bud is complete for better rates. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. 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 20099 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 36602 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 12378 |