Renovating

If home buyers want to renovate as soon as they buy a property, it may be possible to borrow the necessary funds at settlement (with Mortgage Insurance if necessary) to cover the improvements, and then have the home revalued & loan reassessed when the works are completed – so that the debt to equity ratio returns to the level that no longer requires Mortgage Insurance.

Most home buyers prefer to live in a property for some time to better plan the renovations & optimise the use of space, so a second loan can be arranged for this OR a new loan which consolidates the original mortgage and improvement funds. When considering the cost of moving, including Government charges and selling costs, it often makes more sense to renovate and stay within the school zone and local community that suits your needs.

Renovating Tip: Keep the cost of your renovations in proportion to your property's market value. If you spend too much, your home may be worth substantially more than the average for your area or “over-capitalised”, and if you sell your property you may not recover all your money. When property prices are stable or falling it’s easy to over capitalize.

Your First Chartered Capital Broker can help with information and loan pre-approval to make the transition into your new home worry free. Complete our enquiry form now and your nearest First Chartered Capital consultant will contact you by the next business day.