EQUITY ???

you say you are building with your girlfriend and then you reference yoru partner as a he!!!

WHOA !!!
How is your interest in the property protected if its in your partners name ??
Do you have an official jv afgreement to protect your interest, or some other documentation….

Regarding your equity position…most banks will lend to 80% of the value of your property, so if your place is worth $550k then 80% will be $440k and if the mortgage is currently $395k then the available equity that you can use is down to $45k.

You will need to go beyond 80% borrowing to tap any extra equity in your property, and then you start incurring extra costs like Mortgage Insurance, etc. plus the bank may query your servicability based on your income of $95k

I reckon you need to do more homework and get some expert legal and accounting advise

KP

Hi Bradles,

If your pay be 95K and you don’t have anyother loan etc. you will be able to borrow $495k easily.

I understood what you were trying to say when you mention about gf and partner. yes you have to come up with some sort of agreement. one of my friend doing almost same thing. They are buying one house to get FHOG using one person name but they have plan to buy another house soon using other person name and get another FHOG.

Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]

NZ loans and pre approval from 7.99%

Geeze I’m no expert and one of the mortgage brokers would answer this better…

But its $550k x 80% = $440k available to borrow.
Then $440k – $395k = $45k.equity available to use.

However if you can go to 90 or 95% LVR then of course the amount available to borrow increases.

KP

Yes you could go to 90% of the valuation of your property, but you would have to pay mortgage insurance – which could be around $5000.

You could then withdraw the money and ‘lend’ it to your friend witha written loan agreement, charging market interest rates – same as your loan.

You should have some sort of written agreement on how profit and costs can be shared.

He then pays you interest on this money loaned, and can claim the interest on it, if the property is an investment. But since you are paying interest the interest you receive will offset this amount and your net tax bill won’t change.

You should run it by your solicitor.

It will be hard to increase your existing loan until your building is complete.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Wayne;

depend on which bank you’re borrow the money from, usually, cost of morgage insurance is about 0.98% to 1.2% of the loan amount.

Regards
start

Hi Start and Wayne

Yes, it varies between banks and can go as high as 3.1% of loan amount!! It also varies depending on whether the loan is PI/IO, amounts over $300,000 or over $500,000 and whether investment or owner occupied.

as a rough guide:
80.01 to 81% 0.41
81.01 to 82% 0.41
82.01 to 83% 0.56
83.01 to 84% 0.62
84.01 to 85% 0.72
85.01 to 86% 0.84
86.01 to 87% 0.95
87.01 to 88% 1.01
88.01 to 89% 1.12
89.01 to 90% 1.16
90.01 to 91% 1.54
91.01 to 92% 1.59
92.01 to 93% 1.78
93.01 to 94% 1.85
94.01 to 95% 2.04

Terryw
Discover Home Loans
North Sydney
[email protected]