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HashChing is Australia’s first online marketplace allowing consumers to access great home loan deals without having to shop around. Completely FREE to consumers, HashChing connects you directly to verified mortgage brokers who can further negotiate a better rate from the lenders and save you time, hassle and money.

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LEZLI

2 years ago

Hi Kim, shouldn't be a problem. depends on income. but I've got over 40 Lenders with 6000+ loans - so would easily find something for you. Please feel free to contact me via my Profile page. Thank you.

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Michael

2 years ago

Hi Kim, what a fantastic position to be in and as most advisers have pointed out, your scenario will more than likely attract majority of Financial Institutions interest. This is subject to verification of your ability to service the proposed liability. More than likely this transaction would require both properties to be secured against the loan to purchase and then construct. On face value it seems you have a security of approximately $1,000,000 to be used to lend against $750,000 (you would be able to finance purchasing costs/potentially demolishment costs) which is going to work in your favour as there would be no requirement to fund lenders mortgage insurance. With the minimal risk involved, it is likely that most lenders will take on the transaction subject to normal credit criteria. Based on current rates circulating around the market, it is expected the rate would fall within 3.45%-3.89% assuming variable rate and Principal & Interest repayments. To determine serviceability, we would need to obtain income and expenditure figures which includes current liabilities (if any) to ascertain whether capacity can be demonstrated. I have recently just done the same thing here in Adelaide with the project almost complete. If you need any advice regarding construction side of things and assistance in securing finance, please visit my profile and get in touch. Exciting times ahead. All the best Michael (Mortgage Broking Adelaide)

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Linda

2 years ago

Hi Kim, thank you for asking the question. Based on the information you have given the scenario would meet most lenders terms and conditions. This would of course be subject to your ability to demonstrate sufficient servicing of the debt. You would have to offer both properties as security and apply for a loan amount enough to cover the purchase and construction costs. Based on the total debt to value ratio if it is below 80% then you will not need to pay any lenders mortgage insurance. We are here to help so if you are WA please contact me so we can discuss your options in more detail. Regards Linda

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Bob

2 years ago

Hi Kim. Your scenario is likely to attract almost any lender’s best terms and conditions, subject to your ability to demonstrate sufficient servicing income. You would have to offer both properties as security for a loan sufficient to effect the purchase and carry out the construction. With total security valued at around $1M the required loan of $780,000 (including costs to purchase) would mean a Loan to Valuation Ratio of less than 80%. This is important because it keeps you below the threshold at which Lender’s Mortgage Insurance (potentially a significant additional cost) is payable. Estimated monthly repayments would be $3,724 based on a 30-year Principal & Interest loan at say 4%. Interest Only repayment would be $2,600 a month. Lenders will use your combined annual salary less living expenses to determine whether there is a sufficient surplus to meet loan repayments. I recently assisted a couple to do something similar in Pagewood in Sydney. I am Brisbane based.If any of my assumptions are incorrect or you would like to talk about other options for achieving your objective, please don’t hesitate to call. Sincerely, Bob Coleman.

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Lester

2 years ago

Hi Kim, you would require a loan to buy the house, then you need to apply for a construction loan in order to build. I am happy happy to guide through the whole process or answer any questions which you might have. Please feel free to contact me.

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Morris

2 years ago

Hi Kim, sounds great, let me help you secure a good interest rate, as low as 3.54%. contact me for a quick 5min assessment over the phone and i will be able to let you know, how much you can borrow and the new monthly repayments based on the lowest interest rate available. Good luck

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marco

2 years ago

Hi Kim ,yes its doable .Take it, you will sign set price building contract?If in Perth ,welcome for no obligation assessment of all your options and our advice is free.

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Nikki

2 years ago

Hey Kim sounds like a great plan, as stated if you do not owe anything on your home it looks quite doable and you can get some great rates for the construction from 3.84%pa, happy to chat

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Edward

2 years ago

Kim, This all sounds very doable, obviously we would need a little bit more info on your current situation. You are free to contact me anytime. Ed

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Albert

2 years ago

Hi Kim, Great questions. This is actually very simple to finance, and most lenders will be able to help you. The key reason your scenario works is the equity you currently have in your property. This is because at a point in the process you are going to knock the house down and essentially just have the bare land. The lender will look to lend up to 80% of the land value and the new construction costs of $350,000. I would suggest lodging an enquiry on the Hashching website as most broker's should be able to assist you and ensure you have the most suitable and competitive loan possible' regards Awesome Albert

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Andrew

2 years ago

Hi Kim, it will come down to the end valuation of land and construction costs combined. If you own your own home debt free, then there would be equity that can be used if required. If you are in Western Australia, please view my profile for my contact details.

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