# How is LTV calculated for self-build?



## apple1 (11 Oct 2006)

Hi,
Appreciate if anyone can advise how LTV is calculated for sel-build.  Depending on how this is done, we may qualify for a more attractive rate given savings, build cost etc.  Thanks, apple1


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## techman (11 Oct 2006)

I assume it's the loan as a percentage of the market value of the home on completion.


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## Molly (11 Oct 2006)

yes it is based on the value on completion as per valuers report.


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## polaris (11 Oct 2006)

Your bank will look for the projected value of the completed house from an engineer or auctioneer


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## apple1 (11 Oct 2006)

Thanks all.


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## Mark Purcell (12 Oct 2006)

Hi,

LTV on self builds are calculated as a % of the loan versus the value of the property on completion for interest rate purposes.


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## apple1 (12 Oct 2006)

Mark,

Is it the engineer/architect who values the final property for the banks, an independent valuer or the banks appointed person?  Thanks.


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