We currently have 2 loans for our PPOR with CBA, one for the land and one for the structure which was a construction loan. We wish to complete some additional works and unlock some equity through the top up feature CBA offer. This would be on the land loan as it is variable. When CBA do this, do they do another valuation on the security? Is the approval process the same as if applying for the initial loan? Thanks for your help.
They can do an AVM but since its a newly built I would expect a full valuation is needed. They do have an top up feature where you can top up up to $50k without full assessment. Under 80%. Applied through netbank
Thanks Terry Thanks Tony - Top up would be no more than 50k. As mentioned, this would be on the loan for the land and not the structure/construction. We would be relying on the valuation to increase to keep us under 80%lvr. Other blocks of same size within the area are going for 200k more than we paid/were valued at 2 years ago. If they don't do a full assessment, what does there assessment involve? Thanks
Doesn't really matter if the top up is on the land or construction, LVR is based on the total loan against that security
Yes, if the construction loan is fixed, they'll likely increase the land loan if they don't create another loan split. They will probably require a full valuation as well but just give CBA Lending a call about it when you can, they should be able to explain the process easily.
