Hi all,
Is anyone applying for FHOG via bank and already received the payment? What stage are you when you lodge the form? How long does it takes from lodge the form till the payment?
Any comment will be very appreciated. Thanks.
Browse Forums Building A New House Re: FHOG Payment 2Mar 18, 2010 5:23 pm The FHOG gets paid when the slab is poured and gets paid to the bank for use with the build. And it should be paid to the bank within a couple weeks. If you search FHOG there'll be a number of threads with more information ---------------------------------------- Building the PD Lisbon 24 http://www.porterdavis.com.au/#homeviewer/lisbon/24 Blog of our progress. http://lisbon24.blogspot.com/ Homeone build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=28665 Re: FHOG Payment 3Mar 18, 2010 7:31 pm In my case I applied for the FHOG through the bank only after the slab was poured. Why that happened is a long story but generally it should be paid out immediately after the first stage. The SRO pays it to the bank and it then transfers the amount to your designated account. Cheers Avish Re: FHOG Payment 4Mar 18, 2010 8:03 pm Does it vary between states? Our FHOG grant was paid direct to keystart, they forwarded the balance to the settlement agent and they forwarded the balance to us. This was done shortly after land settlement, about 1 month prior to the slab being laid. Re: FHOG Payment 5Mar 18, 2010 9:14 pm TommyDunlop, Avish, Lachjor, thanks for the comment & info. Appreciate your time. Our slab poured last month. We asked about FHOG at that time, and the contact person from the bank said we can used FHOG for the next payment. Now the frame tax invoice is due. Handed over the invoice on Monday, she said it will be paid the same day. 2 days after, followed it up again, she said it has been approved, not to worry about it. Today hubby called her again to follow up, she said we should give her more time (last payment just need 1 day with another person!) and inform us that the FHOG has been lodged today (what the???). Then we asked if we could pay it with our own money (long story, but somehow we can manage it) and the FHOG transferred to our account. She refuse the idea, saying that FHOG only can be transferred to the builder. She suggested using an existing loan and use FHOG for next payment. Well, any idea what should I do? Im getting frustrated to deal with this person. I expected some bumps, but honestly not everytime. Avish, is that true that actually bank can transfer it to our account? Re: FHOG Payment 6Mar 18, 2010 10:00 pm It did in my case. I am in Victoria so not sure about other states. Probably depends on what agreement you have with the bank. In my case the bank made it clear that we have to pay the 10% deposit to the builder and the FHOG amount will be transferred to us. Don't think there is any legal requirement that the payment can be made only to the builder. Cheers Avish Re: FHOG Payment 7Mar 19, 2010 12:00 am It depends on the bank. My bank has had my FHOG money since my land settlement back in September. They will either release these funds on my 2nd progress payment or the last payment. I suppose it just depends on what they feel like, meanwhile if they make it the last I'm paying more interest until my last payment is made, so I will be pushing for it to be paid on the 2nd payment. Your FHOG approval through the bank should only take a couple of days to get an answer. I would probably wait a couple more days to see if they have it. Most of the banks don't like putting the money directly into your account because they loose control of it then. Re: FHOG Payment 8Mar 19, 2010 8:11 am Avish, Michme, many thanks for your information. Your info indeed make me confident that the excuse she was saying yesterday is totally rubbish. She said she can't lodge our FHOG after base stage is because the FHOG will be forfeit if not using within 30 days! I can smell something fishy. The bank had our FHOG application since Dec 09 (land settlement Dec 09 too), and we also mention about FHOG on the base stage payment. So Im not really expected any drama like this. Well, now Im thinking that the bank is being greedy (push it to last payment, so they can get more interest money from us), or its just a person that we dealing with just being silly. Guys, if you dont mind, can you let me know what bank are you dealing with? Thanks for the idea Michme, I will wait couple more days and see whats happening. If anyone have more info/idea/opinion, Im happy to hear that. Im glad I found this forum. Thanks moderator! Re: FHOG Payment 9Mar 19, 2010 10:39 am I called up SRO and was told the FHOG would be made available to my bank once the application is successfully lodged by the bank, and the FHOG can be used to pay for any stages during the build. However the person at SRO also mentioned that banks typically have internal rules which set out which stage they release the FHOG to owners. For me, it's the 2nd stage, ie upon presentation of frame invoice. I am with CBA and my friend with ANZ and both use the same rule, ie at frame stage. Generally banks want to protect their interest and with a slab it can take "forever" to complete the build. However when frame stage is completed as a general rule of thumb, there is less likelihood of undue delay with completing the build. Re: FHOG Payment 10Mar 19, 2010 12:29 pm Rocketleaves, thanks for your information, thats very helpful. I bet Im dealing with so not called organized person in CBA. Now another problem for us. We want to pay the stamp duty, and found out that the land is still on previous owner's name! Called up our conveyancer to find out what happened and she suggested it has to be done soon as term of 90 days is up soon. And the one who has authority to submit the name change is the BANK as they are the mortgage lender. It means this person again??? OMG, How frustrating! Re: FHOG Payment 11Mar 19, 2010 2:30 pm I hope you have put everything in writing with the person you are dealing in CBA, and a deadline to comply. I had a frustrating run-in with their mortgage team: didn't use my FHOG for frame stage invoice due to their stuff up & imposing mortgage insurance close to $3500 when I am paying 20% deposit using my own funds. Because I have my instructions in written form/correspondences, I filed a complaint at CBA customer complaint hotline 1800 805 605. The end result was resolved to my favour: I had the interest incurred on $32k (FHOG) between payment for 2nd and 3rd stage invoice refunded back to my streamline account; and the reversal of mortgage insurance from my loan account backdated with interest. My FHOG was used to pay for 3rd stage invoice instead. This time they did not stuff up. Thank goodness! Re: FHOG Payment 12Mar 19, 2010 6:53 pm I am with Bankwest. I'm about to put in my first progress payment and will be letting them know that I would like my FHOG to be used on the 2nd progress payment so hopefully they will do it. I hope you have some better luck with CBA and it is resolved soon. Re: FHOG Payment 13Mar 19, 2010 9:25 pm Gosh, their mortgage team really needs lots of improvement. LMI was another battle as well for us. Sadly we have to give it up because we run out of time. It was nearly Christmas time, the land is just about to settle, our mobile lender was on holiday, and this person don't even bother to help to solve the problem. It was too late to find another lender and do all the process from the beginning. So that was dead end. Anyway, glad Im keep mostly everything in writing. Thanks for giving me the complaint hotline number, Rocketleaves, I might need it shortly. Thanks for your support, Michme. Good luck with your own journey too. I hope everything goes smooth with your FHOG. Re: FHOG Payment 14Mar 24, 2010 9:16 am Just want to update you with our progress. Finally our grant has been realeased. And the builder kind enough not to charge any late payment for that. Phew! Hasn't heard anything from the bank regarding our land title though. Is anyone experience with this? Any opinion would be appreciated. Thanks. Re: FHOG Payment 15Mar 24, 2010 11:34 am rocketleaves Because I have my instructions in written form/correspondences, I filed a complaint at CBA customer complaint hotline 1800 805 605. The end result was resolved to my favour: I had the interest incurred on $32k (FHOG) between payment for 2nd and 3rd stage invoice refunded back to my streamline account; and the reversal of mortgage insurance from my loan account backdated with interest. My FHOG was used to pay for 3rd stage invoice instead. This time they did not stuff up. Thank goodness! Wow that's amazing you had the interest refunded to you... We instructed CBA to pay our FHOG at slab stage, it never turned up. It never turned up at Frame or Lock up either, despite us writing to them and asking why. I was told yesterday (after sending them the Fixing invoice with a note asking if we are going to get the grant this time) that CBA can only hold the FHOG for 28 days and then they have to return it to the Revenue Office. They said they had the grant, then had to send it back as our next build stage was not invoiced within 28 days of them receiving the money. They've had to write to the Revenue Office again and ask for the money to be sent back. I understand the reason for this is good- so banks are not getting interest on what is not their money. But I'm still not sure it's the truth Seems there are a lot of banks out there withholding people's FHOGs... Anyone work for a bank? Is it true the FHOG has to be sent back if not passed on to the customer within 28 days? Re: FHOG Payment 16Mar 24, 2010 12:57 pm Felistopher, yes indeed I had the interest incurred on $32k between 2nd and 3rd progress payment refunded back to my streamline account. My FHOG was used to pay for the 3rd invoice instead. I had written communications to back my case so the bank bulged. Like dealing with all institutions/businesses, the more they know you are highly knowledgable or will definitely verify their claims, the less chance they will take you for a ride. You will not succeed in getting FHOG for slab payment - that's CBA policy but beyond stab, it's your call to instruct the bank to use the grant subsequently, with funds in your loan account to make up any shortfall. Knowledge is power. Call SRO to verify any info. regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. 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