Equity release with no full valuation

Discussion in 'Loans & Mortgage Brokers' started by couq, 25th Apr, 2017.

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  1. couq

    couq Well-Known Member

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    Hi. I have just check the CBA online Portfolio tab which has had one of my Brisbane IP's go up.

    Would CBA offer to release equity up to 80% without a full valuation? I would like them to use the CBA valuation. Would a 90% equity release automatically trigger a full valuation?

    Also to release the equity what would be best way or reason. In the past I have had to have a contract of sale for a further property to release this equity but would rather have it released before to use at auction. Do they need proof of release for renovations?
     
    couq, 25th Apr, 2017
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    80 % with AVM is pretty easy if it services

    ta
    rolf
     
    Rolf Latham, 25th Apr, 2017
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  3. couq

    couq Well-Known Member

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    Thanks Rolf. And any reason is fine to give to the banks?
     
    couq, 25th Apr, 2017
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    At 80% LVR they should be ok with the desktop valuation.

    If going up to 90% LVR they will require a full valuation.

    If the purpose is for a future investment purchase (and your borrowing capacity is reasonably strong) then an equity release at 80% LVR shouldn't be overly burdensome.

    Cheers

    Jamie
     
    Jamie Moore, 25th Apr, 2017
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    mcarthur likes this.
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    we generally have good outcomes with "personal investment"

    Thats usually ok for a PAYG, less so for SE where they may suspect you will use the new money to buy goats to sacrifice to the SE investment gods

    ta
    rolf
     
    Rolf Latham, 25th Apr, 2017
    #5
    Ethan Timor, mcarthur and New Town like this.
  6. New Town

    New Town Well-Known Member

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    CBA told me recently they would need a valuer to inspect when I asked about extra equity on a PPR, even at 80%.
     
    New Town, 26th Apr, 2017
    #6
  7. couq

    couq Well-Known Member

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    Wow, that's pretty stringent New Town. I guess the tides have changed and with new APRA and banks changing lending criteria it will get harder for investors.

    Banks once again moving goalposts. I will have a chat to the lender later. Perhaps using a mortgage broker may be easier.
     
    couq, 26th Apr, 2017
    #7
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    there are some property types, values and post codes that dont fit - but 90 % of places would be ok for an AVM

    ta
    rolf
     
    Rolf Latham, 26th Apr, 2017
    #8