investment loan to construction loan

Discussion in 'Loans & Mortgage Brokers' started by Oshawott, 6th May, 2018.

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  1. Oshawott

    Oshawott Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    104
    Location:
    WA
    just want to ask some of the resident brokers here what usually happens as per title.

    basically have a 70% LVR investment loan. just want to know :

    1. will i be able to seek bank permission to demolish existing house to build 3 new homes.
    2. will a new application be needed or is there some sort of conversion possible especially if no extra funds are needed from lender to complete the project.
     
    Oshawott, 6th May, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    if the land value meets the approved LVR you should be fine

    typically, most lenders dont mind their security being improved


    Case by case though, some lenders can be really fussy here


    ta
    rolf
     
    Rolf Latham, 6th May, 2018
    #2