Browse Forums Home Finance 1 Feb 06, 2015 3:48 pm Hi Guys, We have signed the contract for a land with an agent and are in process of applying the home loan for land only at this stage. I had gone to a finance broker to check what they offer as well as I went to a bank directly to check with them about home loan. Finance broker gave me some figures which includes the full stamp duty roughly $7300.00 Bank gave me some figures which includes stamp duty roughly $4000.00 . We are first home buyer and as per the SRO website it states that the Stamp duty is $3700 approx. so i am guessing the bank has correct figures included. we are not buying land for investment purposes which is around $7000 approx on SRO website The confusion is why the finance broker has included full stamp duty when they know that we are already first home buyers. Broker and conveyancer advised us that we will get refund on stamp duty. but if we are charged full stamp duty on purchase price of the land then our LMI goes higher as well. As per our calculations we are still savings $4000.00 if we go directly through bank ( less stamp duty and less LMI ). we are really confused here. please advise. Y0u R tH3 Cr3@t0r 0f y0Ur 0Wn R3@L1ty Re: Home loan . Please advise 2Feb 06, 2015 6:00 pm Hi for first home buyers you shouldn't pay stamp duty until over something like 250k of land value so I'm to believe. In qld I think it's like that. Re: Home loan . Please advise 3Feb 06, 2015 9:45 pm What state are you in psyherin? And what is the purchase price of the land? Cheers Tom Re: Home loan . Please advise 5Feb 10, 2015 10:54 pm Hi psyherin, they are both right of sorts. I will explain. When you purchase the land, you will be charged full stamp duty on the $210,000 land value. That figure is $6,870 (including the PPR concession). Add the Transfer of Land fee and mortgage registration, and you're up for $7,633. The reason for this is as there is no dwelling on it, it technically isn't a home and the FHOG or its associated stamp duty discount is not applied at this time. What happens is that within 12 months of settlement of land, you need to construct and and live in the property. Once this happens, you can apply for the rebate (refund) of the stamp duty of $3,435 meaning that you have paid a total of just over $4,000 in total government fees for that land (banks figure). The broker and conveyancer are right in that there is a refund applied, but it is at the end of the building process, not at the start. Cheers Tom Re: Home loan . Please advise 6Jul 27, 2015 5:19 pm Hi Everyone, Finally we had our land valuation done. We have received the loan documents from the bank to sign so that they are ready during the settlement. I am bit confused, as i dont understand how much money i will have to pay during the settlement. I know that Stamp duty and other government fees needs to be paid to the bank. I just dont understand the calculation. We bought the land for 220000 and have paid 11000 deposit. Our bank has advised that maximum we can get is 208825. So I will be paying Stamp duty + other government charges + remaining amount ie. $3685+$432+$175 = $4292 (right???) Now the confusing part is LMI. As per the loan documents, $208825 includes ($203800+$5025 LMI) If i pay Stamp duty + other government charges + LMI + remaining amount ie. 3685+432+175+5025 = $9371.00 (is this correct) if the above is correct then loan amount should be $203800 thereby reducing the repayment right ? hahahah am sooo confused now need help Y0u R tH3 Cr3@t0r 0f y0Ur 0Wn R3@L1ty Re: Home loan . Please advise 7Jul 27, 2015 5:24 pm Ah no, the repayment is based on the total borrowed including the lenders mortgage insurance - you have to pay that back too. Its additional to your loan amount but also borrowed - so you don't have to pay it upfront now, its added to your loan. I haven't checked your math but thats the way the calculations are done. 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 . Please advise 8Jul 27, 2015 5:31 pm Thanks for quick reply I understand how the repayment works. What my confusion is that how much do i have to pay during the settlement as per the above. If i am in position to pay the LMI. the total borrowed amount will lower down right ? Y0u R tH3 Cr3@t0r 0f y0Ur 0Wn R3@L1ty Re: Home loan . Please advise 9Jul 27, 2015 5:41 pm You have to check this with your solicitor - but I come up with $9492 220,000 land less $203800 loan (check there are no fees coming from this too), and $11,000 deposit paid = $5200 balance on the land Plus stamp duty, registration fees and your legal fees too (which aren't stipulated.) 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 . Please advise 11Jul 27, 2015 7:16 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 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 |