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Mitchell W.
Mitchell W.
Gladesville, NSW

I purchased a unit off the plan in in Newcastle for $550,000 last year. The property is due to be completed in February 2018 and the local agents have suggested the property has increased by 10% during construction. I used a deposit bond to secure the property and the finance was approved at 90%. As the property has increased to around $600,000 can I borrow 90% which would almost be the original purchase price? Is this possible?

7 years ago

Depends on the date/year you signed the contract. If property was settling <12 months from contract signing the LVR would be calculated on contract price. If >12 months - depending on lender - LVR may be calculated against final valuation.
Investigate the policy of your lender.


Hi Mitchell, yes, there are some lenders who will value the purchase ‘as at now’ but usually only if it has been more than 12 months since the contract was signed. Valuation will be done at completion. I can look into specific lenders if required.

Dear Mitchell,

I am assuming you will buy it as an investment since you are living in Sydney.
The maximum banks would land on investment is 88% plus mortgage insurance up to a maximum of 90% (inclusive of the mortgage insurance),
They also want to see that you either have 5% genuine savings (money saved slowly) or you have equity in another property.
In terms of lending on the current value, some of them will do.

We would need to talk a bit more to figure out the best way to go forward.
02 9897 9696
0414 545 643

Mitchell. Hi. Thanks for your question. If the date of the contract is greater than 12 months, there are lenders that will take into account the actual value as of today, however, given you are borrowing 90% of the purchase price and would have been pre-approved at that level, I would be suggesting that you allow any additional value in the property to reduce the level of Lenders Mortgage Insurance that you will need to pay and retain your finance budget as per the pre approval, or even less if you have managed to save additional funds since that time.
Please call me if you would like to discuss further

Best Regards
Ken Olds
Customers First Mortgages & Insurance.
1300 ASK KEN (275 536)

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