Subdividing with conventional mortgage loan

[Zachary Sakena]

Hi everyone have read some blog posts but wondering if anyone has came across this subdivision scenario.

I have a SFH that is valued around 325k. I have over 50% equity in the home currently. I am in process of subdividing the lot currently to build a new SFH for myself and keep the existing home as a rental. Hearing date by city for official approval or denial is in august.

My current loan has about 145k left on it with a 3% mortgage.

ideally would like to subdivide keep my existing mortgage on my current home and not affect the rate then get construction loan for new build. By subdividing, this would barely affect my current property value for the home.

how should I approach speaking to the mortgage company about this and what are my potential options.

Thank you to anyone who has any experience on this topic.