Before I go to my bank for finance, I want to run it past someone on the forum first.
I was told it was hard to get a loan through a broker if you have been rejected by one bank already. (I haven’t been rejected yet)
Here’s the story.
I need to finance a sub-division. I have a house on 30 acres in Ballarat. I am subdividing 3 x 5 acre lots and leaving 15 acres with the house and selling up everything as my partner and I have split up. I need $50,000 for the power, elect and council costs. I have a mortgage which is $240,000 and my house is worth $300,000. I have no other debts. The costs for the 3 blocks as I said is $50,000 all up, and they will sell for $60,000 each. I would only need a loan for 6 months at the most. Are there such loans?
Not sure whether to get the loan in both names or just mine. We have a combined income of $75,000.
Will I get a loan, that’s the question. Should I try my bank first or go to a broker?
Hope there is someone out there who can answer all my questions.
Thanks.Hi Pebbles,
Sorry to hear about your break-up but looks like you are keen to get on with it. You could go to your current bank and ask them whether they would give you a construction loan for the subdivision and do not worry if you are knocked back – as long as you can explain why to the next lender you approach (ie it was outside their lending guidelines), up to three knockbacks don’t cause too much problem. The good thing about using a broker is they will shop around and try to only submit the loan to someone who’s already comfortable with the deal – also tell your broker EVERYTHING ie breakup, all other debts big and small, and defaults in the past even on little telco bills etc, so that they can get the best option for you.
Regarding name on the loan – depends whether you are both on the Certificate of Title at the moment. If the answers yes, it’ll be easier to do together, and obviously financially beneficial to you both.
Good luck with it and drop me a line if you’d like a bit more info.
[
]
Mel
[email protected]Approaching a broker or banker and asking them to run your figures is not the same as applying.
I think a broker is your best bet.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The other thing you could do is a joint venture with an investor. The investor lends you the money and takes a percentage.
]
The topic ‘Financial Advice Needed’ is closed to new replies.
