ME Bank construction loan

Discussion in 'Loans & Mortgage Brokers' started by Alicia, 31st Mar, 2018.

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  1. Alicia

    Alicia New Member

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    Hi

    Just wondering does ME Bank go up to 90% LVR for construction loans? Also is it true they have DUA with QBE? Lastly do they allow you to settle on land first and then build within say 12 months? We are selling a vacant block to purchase another vacant block for PPOR and will sell our current house to fund build. We just don't want to sell everything at once in case we end up with nothing with banks being so tight with lending these days. I have spoken to Maqauire Bank but you have to be building within 2 months apparently. Thanks
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    yes to the 90 % lend last I looked

    why the Need for QBE ?

    Suggest you place this with a broker you trust................

    especially in light of your concerns.

    have you looked extracing equity from the current PPOR and using that to Bolster your position.

    ta
    rolf
     
  3. Alicia

    Alicia New Member

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    Thank you. We will possibly only have 10% deposit in total so may need to pay LMI we may have 15-20% depending on sale of house and land and cost of build but only just. I did think about getting some equity from the house but was a little concerned about all the enquiries it will put on our my credit files. 1 for equity release, purchase land and then to built the house. I was going to engage a broker but we are proabably still 6 months out as vacant land will take time to sell. Thanks again.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    a little knowledge might be a dangerous thing here...........

    ta
    rolf
     
  5. tobe

    tobe Well-Known Member

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    Get the build contract before you settle the land. Investigate a bridging loan, where you can complete the build before having the sell your current property. This gives you 12 months to build. You only pay interest on the funds used and these can be capitalised to come out of the eventual sale.

    It’s still worthwhile getting the building contract and having it valued even if you don’t construct immediately. It manages the risks of the type of slab required (the cost), valuation risks etc.