Renovating

[stormers]

Wonder if anyone can help. I am looking at buying a house for a good price. Problem is that it needs some work. House is below market value and I qualify for way more than what the house is valued. My question is will the bank give me additional funds for renovations or do I need to wait for a few years?


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[Juice]

The bank will initially only approve a loan that matches the value of the property, irrespective of your affordability; however you can take out a building loan which will give you additional funds matched to the future value of the property. This will depend on the submission of the approved building plans first. Remember to take out what is known as a Future Use loan. Future Use is when the bank registers a larger bond over the property at the beginning, even though you will only have access to the part of the loan that matches the property valuation. When you then need to access additional funds through your building loan, you won't need to register an additional (second) bond over the property and it will save you some money.

Give your bank a call to discuss the future use and/or building loan options and processes.

Juice

 

[stormers]

Thank you. Will give the bank a call now