From what you say, it seems that you underestimated construction costs and you need to borrow a lot more now than expected. As a result you're stretching yourself more and…

You did well there thanks to the rising market. Obviously your land increased by enough that the equity was more than was required for the 20% deposit on construction to…

Yes. Any new valuation going forward will be determined by current land value plus the new construction. Then it will be compared with current existing residences in the area to…

Below is from the ATO website with examples. I think there needs to be valuations conducted to work out land values, etc. However Bec is right, talk to an accountant…

When you say H&L package, is it two separate contracts for land and construction, or is it one contract which settles after completion of everything?
As they are treated differently…

My understanding is that the building contract needs to be entered into prior to settlement/funding for the land. At least that is the process with CBA. Not sure about other…

Technically you can have your building contract formally signed at any point. That is between you and the builder.
However in terms of the loan, you will have to show evidence…

Great to hear it got sorted!
Cheers,
Tom

Sorry but what is a CDC?

Yes, you do need to get the banks consent. As they hold a mortgage over it they need to be informed of major changes, of which a knockdown and rebuild…

That sounds a bit weird. As its your money it is above and beyond the loan.
Unless they did a drawdown and then released the money into your account?
What happened to…

Being a broker myself, I'm not a fan of people shopping brokers around, especially if there has been a lot of work put in. I would suggest you try your…

I have found that once you are above base 90% LVR, then banks look at applications in a more conservative light. Not only banks, but the LMI provider gets involved…

I've had this before with people buying investment properties first in Victoria. As long as it was bought after July 2000 and it was never lived in by the purchaser…

If you are comfortable with the repayments holding both properties for that temporary period, then it can be a worthwhile exercise.
What are some of your concerns you have after…

As Bec says yes it is. What Macquarie charge is really on the high side compared to a lot other lenders for the same thing, but there is not much…

Just to add to Bec's post, you need to take into account the possibility of a valuation shortfall, or unexpected contingency costs that may come up that are on top…

As Bec said, you can basically do what you want whether its go direct with a bank or with another broker. There may be other options out there now that…

Have to say that current lots being sold for $370,000 compared to the $430K you paid doesn't bode well for any valuation if they are of a similar size and…

It all depends on how strong your overall application is. Having a 10% deposit overall (plus additional for closing costs such as stamp duty, etc) can be viable.

Are you sure it's a pre-approval? If you have had the application fully assessed and it is just subject to the block being titled as a settlement condition, then this…

Even BOM (or St George to rest of the country) do it as well. Servicing on end debt only also.

There are a few select lenders that still offer 95% LVR on vacant land, Bankwest is one that comes to mind.
It's however fraught with danger purchasing land at that…

Two options. One as mentioned above, you can take equity out of your existing property as cashout to use as the deposit for the land/build, and then take out the…

Might be the FHOG in that they have withheld it as part of the payment. Not sure how it works with CBA, I know with ANZ they will allow the…

The LMI is calculated on the base loan which is the amount at 89.7% in your case.
If you pay the LMI with cash then the loan amount stays as…

As Bec says, only you can make the call. Its a lifestyle decision. Just make sure you are able to afford the loans with an equity release and there is…

If you are comfortable with a higher LVR and LMI, then don't let that deter you. In the end it's your decision to make, and no one else can do…

On the face of it, if you don't have any other debts or liabilities, then servicing won't be an issue from the information given above. Obviously there is more to…

If you are constructing an owner occupied property and have the fixed price building contract in place, the lender does not take your existing rent into account during the construction…