A couple wanted to knock down and rebuild their home, funded in part by selling their investment property, and wanted the finance confirmed before committing to either. We secured $1,400,000 against the $2,000,000 as-if-complete value.
Home › Case Studies › $2M Knockdown Rebuild
A software engineer who started his current role in March 2026 after more than six years in the same industry, and his partner, who works 30.4 hours a week for a construction company. Their combined income is $317,960.
They have paid their home loan down steadily and hold significant equity. They also owned an investment property, which they planned to sell, and had around $210,000 in cash.
Secure a pre-approval for a knockdown rebuild of their existing three-bedroom home, before finalising build contracts and before putting the investment property on the market.
The plan had three parts that depended on each other: the build finance, the sale of the investment property and the build contract. They wanted the finance confirmed before committing to the other two.
That meant the loan had to be assessed on what the home will be worth once built, and on sale proceeds that had not yet been realised. One borrower had also only recently started a new role.
| Item | Value | Facility | Plan |
|---|---|---|---|
| Home | $2,000,000 as if complete | Existing home loan | Knockdown rebuild, existing loan refinanced |
| Investment property | $1,100,000 expected sale price | $639,552 of lending | Sell, lending closed on sale |
| Cash | $210,000 | — | Toward the build and a buffer |
Selling the investment property for the expected $1,100,000 clears its lending and leaves an estimated $425,448. Added to $210,000 in cash, the couple had $635,448 to work with, more than twice what the build needed from them.
| Item | Figure |
|---|---|
| Expected sale price, investment property | $1,100,000 |
| Less agent fees (3%) | $33,000 |
| Less miscellaneous costs | $2,000 |
| Less lending repaid on sale | $639,552 |
| Estimated net sale proceeds | $425,448 |
| Plus cash available | $210,000 |
| Total funds available to complete | $635,448 |
Their $302,390 contribution covers 32.5% of the $930,000 build contract, with the loan funding the remaining $627,610.
| Metric | Figure |
|---|---|
| Lender | Bankwest |
| Outcome | Conditional approval, subject only to the sale of the investment property and payout of its loan |
| Loan amount | $1,400,000 |
| As-if-complete value | $2,000,000 |
| LVR | 70% |
| Repayment type | Variable, interest only until fully drawn and the build is complete |
| Loan term | 30 years |
| Income accepted for servicing | $317,960 |
| Build contract | $930,000 |
| Contribution to the build | $302,390 |
| Buffer retained | $333,058 |
| Status | Investment property sold, ready to build |
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1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
Alex, Jess and the Kingfisher team were second to none and their process from start to finish was faultless. As a self-employed business owner, it can be difficult to obtain finance at the best of times. The Kingfisher team made this an easy and efficient proposition and their continued transparent and efficient communication ensured we were kept up to date at all times. Highly recommend them for your finance needs!
Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
