Browse Forums Building A New House 1 Aug 18, 2014 2:57 pm Hi we are firsr home buyers with currently less than 5% deposit for approx $350,000 loan. We are sourcing every avenue as we are living with the inlaws & are trying to get our own place. We have spoken with our bank & they are saying we can buy land and all we would need upfront is 5% of land price, which we currently have. Secondly the said we can use fhog as our contribution to the builder. My question is has anyone else been through this process & did you get approved going this way? And I am finding it difficult to find information on a total price of home being built eg turnkey price & how much it would cost to prepare the land ready to build. We can not go over budget of $375,000 total. Would anyone know who to contact to find out this info? Re: First Home Buyers 3Aug 18, 2014 3:24 pm What the lender probably means, is that you get finance from your bank on the condition that they retain the "grant" as part of the overall loan for your build. Many banks will process the FHOG application on your behalf to ensure they retain the "grant" in their trust account. For the FHOG, "applications must be lodged within 12 months of completion or settlement of your new home". So the lender will retain your "grant" at settlement when the build has been completed. So your loan would be the "total cost of the build' less the "grant". It is probably best to speak to your lender how you want to approach this. Re: First Home Buyers 4Aug 18, 2014 5:13 pm we needed just under 20k deposit to make 5% a 155k block and a 212k house. This took into consideration 10k FHOG and approx 11k LMI from the bank Hope that helps. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: First Home Buyers 6Aug 19, 2014 9:11 pm Pink86 Ponzu was 212k the total price of your home built? Was this a 3 or 4 bed? May I ask what builder? Thankyou 217 was the cost of the whole build. 5k over budget on inclusions. Burbank. 3 bed 25sq home. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: First Home Buyers 7Aug 20, 2014 9:02 am Pink86 Hi we are firsr home buyers with currently less than 5% deposit for approx $350,000 loan. We are sourcing every avenue as we are living with the inlaws & are trying to get our own place. We have spoken with our bank & they are saying we can buy land and all we would need upfront is 5% of land price, which we currently have. Secondly the said we can use fhog as our contribution to the builder. My question is has anyone else been through this process & did you get approved going this way? And I am finding it difficult to find information on a total price of home being built eg turnkey price & how much it would cost to prepare the land ready to build. We can not go over budget of $375,000 total. Would anyone know who to contact to find out this info? Hi pink, we were in a similar situation to you. Our total house cost is $455 totally finished inside and out (not blinds) drive ways, fences, decks landscaping etc. We have 2 loans a land and a construction. We paid our 5% on the $455k and contributed that to the land. Repayments and interest were less and as we had our land for 8 months before the build started that was great for us so we could keep saving. With our FHOG, our house was only valued at $410k so a lot less than what the houses was costing us. So our first repayment to the builder was the FHOG and then the rest the bank paid which again was great as our repayments and interest were less. So bring our total money to spend to $425k. But as you can see there is still a difference to our total cost and the value of the whole project. Our project didn't get valued as high as what we were excepting off paper. We are now at the end of our build and our house has been revalued and has been valued with more than enough to cover the difference from the first valuation to the actual price. Also I can say don't go in to a build having no other money for cause things just pop up. Our house has a lot of upgrades so if you are happy with standard that's great and you can get a great first home for a good price. I am building on the central coast. Well almost finished we get our keys on Friday!! Where abouts are you looking to buy land on the central coast? . Re: First Home Buyers 8Aug 21, 2014 10:22 am Me & my partner got a house & land package & including extras is came to 370, we also paid out his loan and took out extra money for tax etc. altogether our loan will be 420 & we've only paid a 2k deposit. Were going through home solution by metricon. & we get the fhog & the deposit we paid in our pockets Home Solution by Metricon - Luna 28 http://hayleyandjonshouse.blogspot.com.au/ viewtopic.php?f=31&t=73643 Re: First Home Buyers 9Aug 21, 2014 7:44 pm Thanks pennykate, so after meeting with our bank we had the green light to start looking at land & building then I get a call to say sorry you still need to save another $12,000 to make 5% apparently the mortgage insurer requires 90% not 95% like an established home. Now we are back to square one. Haychhh that is a great option but the don't have packages in our area. We are looking to build more around bonnells bay area rather than central coast, a bit closer to the family. But now we just have to keep saving!!! Re: First Home Buyers 10Aug 22, 2014 9:52 pm Pink86 Thanks pennykate, so after meeting with our bank we had the green light to start looking at land & building then I get a call to say sorry you still need to save another $12,000 to make 5% apparently the mortgage insurer requires 90% not 95% like an established home. Now we are back to square one. Haychhh that is a great option but the don't have packages in our area. We are looking to build more around bonnells bay area rather than central coast, a bit closer to the family. But now we just have to keep saving!!! Can I suggest you talk to a mortgage broker? I have an awesome mortgage broker who would be able to help you out. I am in a similar situation building on the central coast and we are only paying 5% for the whole build. Pm if you like and I can give you more information such as pricing etc. Deposit paid 09/02/14 Plans received 26/04/14 Land registered 01/08/2014 Settled on land 18/08/2014 Plans to council 20/08/2014 http://verdelhofourtwist.blogspot.com.au/ Re: First Home Buyers 11Aug 22, 2014 10:06 pm kays_first_home Pink86 I am in a similar situation building on the central coast and we are only paying 5% for the whole build. Pm if you like and I can give you more information such as pricing etc. A broker may be the answer. It may also not be. Banks will ofen require a higher deposit from those it considers riskier. Pinks situation maybe different to yours. Broker is a good next step, but don't get over excited just yet. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. demolisher 12Aug 22, 2014 10:54 pm Hi all I need to find a good and cheap demolisher as we will be doing a Knock Down rebuild. any recommendations would be really appreciated KDR. Overture Premier 09/14 $3900 10/14 Plans 11/14 Contracts 03/15 Demo 04/15 Validation 05/15 Slab 06/15 Frame 06/15 Bricks 09/15 lock up 16/12/15 Keys Re: First Home Buyers 14Aug 23, 2014 8:57 am Thats strange I wonder if its different in different states. Im in qld and we were initially told that u couldnt use it so we were borrowing the money off my mum until we did the application n it said that we were contributing the grant as well so we just did our savings plus the grant. Ur talking about the great start grant of 15k rather than the first home owners grant right? What lender r u looking at going thru? Have u spoken directly with a mortgage lender rather than a broker? Our first home: viewtopic.php?f=31&t=72839 Re: First Home Buyers 15Aug 23, 2014 9:16 am Great start grant isn't available in NSW as far as I am aware only the first home buyers grant. Yes we have spoken with our Mortgage lender at our bank who gave us the green light & went to go pre approval untill she realised we can't use FHOG as deposit towards construction. But the builders loan australia website say that you don't need any savings & FHOG can be used with certain lenders? Re: First Home Buyers 16Aug 23, 2014 10:05 am Pink86 Great start grant isn't available in NSW as far as I am aware only the first home buyers grant. Yes we have spoken with our Mortgage lender at our bank who gave us the green light & went to go pre approval untill she realised we can't use FHOG as deposit towards construction. But the builders loan australia website say that you don't need any savings & FHOG can be used with certain lenders? Some BUILDERS will accept fhog as part of THEIR deposit. Not lenders. You need to find a builder that has factored fhog into its sales pitch. You know the ones , "build a home now for only 2k deposit!". Then use that builders brokers to get the loan through whattever lender looks good. The broker has the relationship and arranged finance fo4 many customers in the same boat. If you just go to any random broker then they will tell you what the banks tell you. Good luck. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: First Home Buyers 17Aug 23, 2014 10:34 am Hmm not sure sorry must be different in qld. I guess if numerous people are saying u cant use it, must be the case. Have u got anyone that can do what my mum was going to do and lend it to u? We had planned to pay it straight back to her when we got the grant paid. Or not ideal but get a loan for it and then pay it off when u get the grant? Might cost a bit in interest but will get u into ur own home sooner and save u on rent! Our first home: viewtopic.php?f=31&t=72839 Re: First Home Buyers 18Aug 23, 2014 10:55 am Thanks everyone. We have been in contact with new home group which overall can offer a house & land package for approx $470,000. We might need to look at asking family to lend us I didn't think of the personal loan. Thanks I will look into this. I really appreciate everyones suggestions. Thanks NativeZen! I can't wait to start landscaping, though it's going to be a while away yet. No movement on site yet as of the weekend. Hoping to see some earthworks… 3 2148 We already paid for somfy motors for the blinds. The quote above was purely for “pre-wiring” so the blinds company can install the motors and blinds. That’s why we… 5 8012 nothing to do with salespeole. you'd do well to read and ccomprehend the post before bashing away at the keys with some negative comment again. 4 5034 |