Browse Forums Home Finance 1 Aug 08, 2015 12:09 pm I am purchasing a block of land now, 5% deposit, Stamp duty and LMI. When I'm ready to build a house how much money am I going to need, 5% and additional LMI on the house price? Or will the LMI be on the total price even though I've paid it once on the land. Re: Home Loan Help 3Aug 08, 2015 6:52 pm The LMI is based on the total but you receive a credit for the lmi already paid - there's a small issue where you refinance the land loan into the build - if you need the max I recommend you don't do that, combine them at the end. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Home Loan Help 4Aug 09, 2015 12:16 am If you are able to stay with the same bank for the entire land and then build you will need your 5% of build price and extra lmi for the build , whatever that comes to for your total . However if your bank gives you a terrible valuation on the total land and build price be prepared for a shock , You will need a total of 10% to refinance the land alone And now you will be paying the lmi on the land again . Thats what we had happen to us , some banks may refinance to 95% but it's still something to be aware of when buying land to build on , banks build valuations are not always favourable to your plans . Re: Home Loan Help 5Aug 09, 2015 7:33 am Oh Glennc that's awful - doesn't happen very often thankfully. The build price is a cost based valuation so it's usually the land that causes odd results - once the land is set its usually fine unless a lot of land has been sold cheaper or the build price per m2 is too much. Thank goodness that's a rare occurrence. Sorry you exoerienced that. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Home Loan Help 6Aug 09, 2015 11:55 am All good that bank no longer has our business , $100 k low is just ridiculous it was a big build but nothing too out of this's ordinary . We changed builder for other reasons . New build is quite similar , less on the structural alterations after the shock of first valuation New bank was still low but only 20 k Took some figuring out but we got there in the end and start on site in about a week . Site costs due to e class soil added quite a bit , a cost that you must pay to build. but has no effect on the finished value of your build . Building isn't quite as straight forward as it seems ( and financing it ) Aim to have a decent buffer to help get through any minor problems when your building Certainly helped us to continue on . Re: Home Loan Help 7Aug 09, 2015 5:05 pm my lender lends 95% LVR for the land but 97% for house and land, does this mean for construction I will need 5% of buiding price and then the lender will capitalise most of the LMI into the loan when I go to construction. Sorry If my question sounds dumb, its all a bit confusing Re: Home Loan Help 8Aug 09, 2015 5:08 pm Usually they lend 95% plus lmi up to 97% maximum. So in this case yes you need 5%. But if your loan is larger the lim is more and you could need more savings to keep under the cap of 97% Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Home Loan Help 10Aug 09, 2015 8:04 pm You're welcome Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Home Loan Help 11Nov 06, 2015 11:30 am Hi becjarrettdalton, I have a 50K provision cost in my contract so my loan is approved with this 50K, So LMI is calculated including the provisioned 50K. My question is if only 20K of the provision 50K was needed, Can I withdraw the balance 30K from loan account? To do curtain or landscaping? Or is bank going to repay me the additional LMI they have taken for 50K as actual cost is 20K? Thank You. Re: Home Loan Help 12Nov 06, 2015 11:34 am Hi New-Robinhood Thats a pretty huge provisional allowance, probably best to speak to your broker about your personal circumstances - a difference that large the bank will question. Most often the provisional allowance is $10,000 and nearly all the time $5,000 of that at least is spent. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20086 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36595 Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 738 |