Construction loan for major reno

Hi guys,

We are planning to undertake Reno at our place. Speaking to a couple of builders it might cost 300k ball park as we are thinking to add another floor and rejig existing floor plan ( no knock down rebuild)

Can draw around ~50k equity with the current market condition and Val. So question to our resident broker gurus- if a contract is drawn up with a builder, can I get construction loan(serviceability not an issue)?
TIA

 

it is possible

 

Thanks Terry. Are there any items like driveway,landscaping which cant be included this loan and I should be aware of?

 

If you've got a fixed price build contract, copy of approved plans, and quotes for any external items outside of the contract then can be done through a construction loan. Depends on the LVR% but generally valuer will do an "as if complete" valuation and the lend will be against that value.

Some lenders will look at land value and allow cash out to 80% on land value without controlling the funds through a construction loan.

 

Thanks Richard. Think I'm better serviced by a broker. I'll give v you a buzz.
TA