increase in property value

Discussion in 'Loans & Mortgage Brokers' started by CraigJ23, 22nd Sep, 2021.

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  1. CraigJ23

    CraigJ23 Well-Known Member

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    If the value of a mortgaged property increases, does this have any affect on the loan?

    If you refinanced the loan, would you be able to get better interest rates as a result of the increased property value?
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    No

    Yes
     
  3. CraigJ23

    CraigJ23 Well-Known Member

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    If there is a decrease in the property value, will the lender increase my interest rate ?
     
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  4. Lindsay_W

    Lindsay_W Well-Known Member

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    No mate, loans don't work like that.
    Chat to your broker more.
     
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  5. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Yes, some banks are better then others. On rates based in LVR
     
  6. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    The LVR (loan to value ratio) will decrease and some lenders will let you reduce accordingly and get a better rate. With Bankwest for example, you can do a desktop valuation 12 months after settlement and if it has changed LVR band get a better deal.

    See above, same applies for new lenders, often they put out special deals that are lower than carded rates so can refinance when the value rises and even get a bonus cashback as plenty ion offer atm.
     
  7. CraigJ23

    CraigJ23 Well-Known Member

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    When they give you a better deal after a valuation, will this involve a new credit assessment, or do they simply reduce your rate on the current loan?
     
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  8. Chris B

    Chris B Well-Known Member

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    If you are not making any other changes to the loan, there won't be an assessment.
     
  9. craigc

    craigc Well-Known Member

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    Does anyone know if Macquarie can offer better rates without reassessment as the LVR drops due to property value rises?

    Much appreciated
     
  10. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Yes, with a new valuation.
     
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  11. CraigJ23

    CraigJ23 Well-Known Member

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    Does the borrower have to pay to get the valuation done in this situation? Does this differ with different lenders?
     
  12. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Depends if Mac Bank requires a full valuation or not for your property, if there's a cost, the yes it'd payable. .
     
  13. CraigJ23

    CraigJ23 Well-Known Member

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    How much do these sort of valuations cost the borrower if he or she pays for it themselves?
     
  14. Lindsay_W

    Lindsay_W Well-Known Member

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    $300++ depending.
    If you have a broker, they may be able to order a valuation for you for free, as long as they've got the free valuation code from Macquarie (not all brokers have it)
     

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