As Bec says, bridging is one option, another might be prospectively renting out you current home to improve serviceability in the banks eyes (and allow you to keep the current property as an investment if you wished). All will need further investigation. In regards to your question on a construction...

In terms of a loan, everything is taken into account. So the liabilities of the car loans and the credit cards will be looked at as part of the scorecard that most lenders do, and if it passes that, it all depends on the rest of the deal. In saying that, the cars would be secured loans I presume whi...

Unfortunately no lender out there will allow that. Basically anyone on title needs to be on the loan in some fashion, whether as borrower or guarantor. I don't know if it helps, but there is one lender out there with a specific product who will allow each person to be responsible for their own separ...

Hi Usam, 1) Even though you have 20% for construction, the lender will first charge you LMI at land stage and then be charging you extra LMI at the construction loan as they will then be calculating it on the total LVR. 2) My opinion is this would be the preferred option, because if you don't apply ...

Hi RachM, In that case still eligible for FHOG. Don't understand why the broker is asking for a stat dec from them though, I would have thought that the guarantors would be signing forms from the actual lender themselves as part of the application about being the guarantor? Cheers, Tom

Hi RachM, Are they guarantors here putting the property up along with yours, or are they also going to be on the loan/title as well as borrowers? If guarantors, then no issue, you are still eligible for FHOG, if they are borrowers then not as they already own a property. Cheers, Tom

Just to add to Bec's post which she nailed on the head, if the land is settling more than 6 -12 months after purchase and has increased in value in that timeframe, there are some banks who will use the land value rather than purchase price at the time of settlement (thereby giving instant equity). C...

Generally any additions after a loan has been approved need to be paid out of your pocket. If you do want to add it into the contract as a post contract variation to borrow the funds, the loan will need to be reassessed again. Cheers, Tom

Hi Okman, As with all loans, the purpose of the loans determine deductibility. So in your case if you are keeping the existing property as an investment, your deductible debt will never be more than $260K (unless you invest the redraw funds). Hence in your scenario, option 2 is a no no as all you wi...

thanks for the information.. not sure whether im going to meet the 12months deadline.. as my land settled April this year..and just finalized the build contract and now waiting for the build permit.. which the builder mentioned the earliest start date will be in Nov and completion date maybe in Jun...

Hi Annielee, The time frame is very important here. To be eligible for the First Home Owners Grant stamp duty refund, you need to have constructed the house and moved into it within 12 months of settlement of land. If it is longer than that then you cant apply for the refund. That's why the bank is ...

I hope this all make sense. We are FHB. So thinking about buying land outright and that will take up about 85% of our savings. We figure this way we don't have to worry about making loan repayments on the land and will only make repayments on the construction loan. Is it possible to use our land as...

LMI all depends on loan value and the property value, and each lender has a different way to calculate it. As I said, 90% lend is dependent on whether you meet the lenders policies, but I would say Westpac would be a good place to start. Cheers Tom

Depending on your circumstances such as job, time remaining on 457 visa, you may be able to get 90% lend. However remember you will have stamp duty, LMI to pay as well so need to allocate for that. Cheers Tom

No problems. Glad to be of service. Hopefully it works out for your friend. Cheers Tom

Hi there, I have a scenario where the wife and husband are both on the titles for their house. For whatever reason the husband needs to get rid of some of his assets. Question I have is, is it possible to transfer the title completely over to the wife from the husband without incurring stamp duty? ...

Hi becjarrettdalton. What is the average timeline to get full approval of the land loan after getting pre-approved? We were advised by our solicitor that our land might settle by end of this month and now arranging for full approval. So I'm a little worried that we might not meet the deadline. Chee...

Hi. Just after a little guidance please. We are looking to purchase a block of land to build after we sell our current home. We have found the block that we want to purchase earlier than what we thought we would. Our house is not yet on the market. We are wondering if it is best to use the equity i...

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 ...