Lenders based on valuation.

Discussion in 'Loans & Mortgage Brokers' started by klabat, 26th Apr, 2019.

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  1. klabat

    klabat Well-Known Member

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    4th Jul, 2015
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    Australia
    Hi guys,

    Just wanted to know if there are any lenders that would finance based on the valuation figure/ report?

    Basically we currently have a custom build that is only $600k (build contract and land which was purchased 3.5 years ago) We know as of current the properties as of the last three months quite similar and comparable are hovering between the $870-980k mark.

    Wondering if there are lenders that would lend the current market value, rather then the build contract and land component based on 2015 prices. Wondering if the equity generated could be used as an 80lvr rather then putting more of my cash in.
     
  2. tobe

    tobe Well-Known Member

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    Location:
    Melbourne
    Yes, many lenders do that. See a broker and get some upfront vals done.
    Note the build cost estimate in the val isn’t going to change. It’s ore likely the land component.
     
    Terry_w likes this.
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    As far as I'm aware, after 3 years, every lender will recognise the current value (which is based on their valuation report).