Browse Forums Home Finance Re: Deposit/loan advice 2May 05, 2016 7:31 am Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Deposit/loan advice 5May 05, 2016 7:37 pm Hi Kylie, Providing the valuation comes up ok & according to my rough maths you should have 20% deposit and avoid mortgage insurance. You might need to consider finishing items like driveways, fencing, floor covering, window coverings etc - and allow for these or are they them included in the contract? Regards affordability - would need to have a full conversation with you to determine what else you have going on & whats comfortable for you - based on just the information provided here you have plenty of room to move on the banks calculators. Happy building! Bec Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Deposit/loan advice 6May 11, 2016 1:21 am Ponzu Mortgage insurance drops off at 80% LVR. So rough napkin math, youre at 19% deposit on 310k house with the first home builders grant 16% if only 50k is considered. IIRC LMI amount is relative to how far of 20% deposit you have so it might not be a huge deal to cop a little LMI. Although I'm unsure if the remaining liability on the land will be tKen into account in the LVR calls given its seperate to the construction loan. When the bank does the valuation, they will take into account the land and construction as one for LVR purposes. As the OP already has equity in the land (and assuming it hasn't changed or has in fact appreciated), and if they don't overcapitalise on the construction, then LVR should be under 80% and no LMI applicable. As for their borrowing capacity, as Bec suggested it deserves more scrutiny to come up with the complete financial picture, but at first glance and if there are no other major liabilities, then that shouldn't be a problem. Cheers Tom 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 19068 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4814 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 35305 |