I want to refinance a house and have a line of credit set up. Now do I have to know what the house is worth and apply for a certain sum OR can I say to the bank “ok you figure what the house is worth, I want a line of credit to as much equity as possible”.
wodya rekkon?
You could just ask for 80% (or whatever) of the value. The lender will ask for an estimate, and this will be given to the valuer. If it comes in higher, then you can usually adjust the loan value up – depending on serviceability.
Best to use a broker to assist in this.
Terryw
Discover Home Loans
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thanks Terry
As Terry mentioned 80% would available without Mortgage Insurance however if you are happy to pay this and wish to access more equity then 90 / 95% LVR would be available.
In most cases an estimate of the property valuation is made and the Bank’s valuer will come back with what he assesses the valuation at. The Bank will make an offer on the valuation received from their valuer and this will be the amount available to you to using a line of credit.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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