Browse Forums Buying Land 1 Apr 30, 2011 7:53 pm We have a Land and House Package loan ( We have taken 90% loan). In our case our land is getting settled first and then the builder will start building the house. So how much do we need to pay during the land settlement. 1) Do we have to pay 10% of the whole Land and House amount at the time of land settlement ? 2) Do we have to pay 10% for the land at the time of land settlement ? How does that works? Any experts suggestions are appreciated or had the same scenario before. Thanks in advance Srini Re: Land Settlement 2Apr 30, 2011 7:54 pm Are you buying the land & house as one? Or are you buying land and then building on it soon afterward ? Re: Land Settlement 3Apr 30, 2011 8:08 pm theanonyuser Are you buying the land & house as one? Or are you buying land and then building on it soon afterward ? We brought a land from land office and selected a builder but we took land and building loan together. That is the scenario. Please explain Thanks Srini Re: Land Settlement 5Apr 30, 2011 8:24 pm nymphser theanonyuser Are you buying the land & house as one? Or are you buying land and then building on it soon afterward ? We brought a land from land office and selected a builder but we took land and building loan together. That is the scenario. Please explain Thanks Srini Hi Deb we are you buying land and then building on it soon afterward ? Re: Land Settlement 6Apr 30, 2011 8:42 pm If you buy the land first yourself, you then have to pay a 5% or 10% deposit. When the time comes for the land to settle, you will have to pay the full amount for the land. You will then have to start making payments on the money you have borrowed from the bank for the land. You start paying for the house as soon as the builder completes the first stage, which will be the slab and then you pay all the other stages as they are done. But if you buy a house and land package, some builders take a deposit and the balance at completion of the house. We are building, we bought the land first and started to build as soon as the land titled. Re: Land Settlement 7Apr 30, 2011 9:06 pm deb17 If you buy the land first yourself, you then have to pay a 5% or 10% deposit. When the time comes for the land to settle, you will have to pay the full amount for the land. You will then have to start making payments on the money you have borrowed from the bank for the land. You start paying for the house as soon as the builder completes the first stage, which will be the slab and then you pay all the other stages as they are done. But if you buy a house and land package, some builders take a deposit and the balance at completion of the house. We are building, we bought the land first and started to build as soon as the land titled. Hi Deb, thanks for your reply., I will expline my scenario, We have bought land from Estate Developers(not at settled),then we are planning to build with other Builder, 1.Land with Estate Developers(A) 2.Building with Builder (B) both are different.... I have applied and got 90 % loan for house and land together ,So 10 % is from me including First Home grant. Land settlement is next month,then should I pay to bank 10 % of land or 10% of Land and Building. I just applied First home grant, I'm short of First home grant money to show them 10 % on whole. I can pay 10 % of land , but not whole.. what is the alternate to handle this situation. Can you please help me Re: Land Settlement 8Apr 30, 2011 9:15 pm The best thing may be to speak to your bank directly (or mortgage broker if you used one). With my purchase I had already paid 10% deposit on land at contract signing (my loan is also at about 90%). When the land settled I had to pay the additional costs (ie stamp duty, conveyancer charges etc) and the loan funded the rest of the purchase of the land. I assume you have a construction loan? House - Lockup completed 23rd December 2011 - Painters are in!!! https://forum.homeone.com.au/viewtopic.php?f=31&t=37261&start=0&hilit=Blaxland Re: Land Settlement 9Apr 30, 2011 9:17 pm This is how it happened for me Basically you pay your entire deposit to the bank and the bank will pay for the rest of the land at settlement with the loan. Then you start paying part of your mortgage to the bank. As the builder completes each 'stage' the require the payment for it. The bank will then pay this out of the remaining avail loan funds. Your mortgage payments will get more expensive as more of the loan is used until the end where you will be paying the full amount. Built with RedInk Custom 5000 Key Handover 15/12/2009 Re: Land Settlement 10Apr 30, 2011 9:21 pm buildingwest The best thing may be to speak to your bank directly (or mortgage broker if you used one). With my purchase I had already paid 10% deposit on land at contract signing (my loan is also at about 90%). When the land settled I had to pay the additional costs (ie stamp duty, conveyancer charges etc) and the loan funded the rest of the purchase of the land. I assume you have a construction loan? Hi, Ours is a Land and House Loan. But we need to settle Land first and then start building the house Building Re: Land Settlement 11Apr 30, 2011 9:42 pm nymphser buildingwest The best thing may be to speak to your bank directly (or mortgage broker if you used one). With my purchase I had already paid 10% deposit on land at contract signing (my loan is also at about 90%). When the land settled I had to pay the additional costs (ie stamp duty, conveyancer charges etc) and the loan funded the rest of the purchase of the land. I assume you have a construction loan? Hi, Ours is a Land and House Loan. But we need to settle Land first and then start building the house Building Yes, so you will have to get the money from the bank and pay the developer for the land at settlement. If the land is 200,000 and you have paid ten per cent of it 20,000, you will then have to get the bank to pay the developer the balance of 180,000. You will then start making payments on this loan. Once the house starts you will then borrow to build in stages, it will join up with the land loan and will be only one loan, but payments will increase with each progress payment to the builder. Re: Land Settlement 12May 01, 2011 9:29 am Eventually you will pay around 10% of the overall cost of the loan. If its just the land settling then I would assume you pay the 10% for the land. And later the 10% for the construction. Do you have a broker / bank manager you can chat to? Re: Land Settlement 13May 02, 2011 8:36 am Our lender wanted us to spend out our entire 10% "deposit" before they would draw on any loan funds, with the exception of the FHOG which is only available at the base stage. We had already paid 5% deposit on the land and 3% when we signed the building contract, so we paid the rest of our contribution at land settlement, and the bank drew on the loan for the balance of land settlement and covers all building stages (except $20k at the base stage, which comes from FHOG). This arrangement seems to vary from lending manager to lending manager, even within the same bank. I'm not sure if there's any single rule. Matt's Brando: viewtopic.php?f=31&t=46340 Started March 30th 2011 PCI July 15th Re: Land Settlement 14May 02, 2011 9:35 am deb17 nymphser buildingwest The best thing may be to speak to your bank directly (or mortgage broker if you used one). With my purchase I had already paid 10% deposit on land at contract signing (my loan is also at about 90%). When the land settled I had to pay the additional costs (ie stamp duty, conveyancer charges etc) and the loan funded the rest of the purchase of the land. I assume you have a construction loan? Hi, Ours is a Land and House Loan. But we need to settle Land first and then start building the house Building Yes, so you will have to get the money from the bank and pay the developer for the land at settlement. If the land is 200,000 and you have paid ten per cent of it 20,000, you will then have to get the bank to pay the developer the balance of 180,000. You will then start making payments on this loan. Once the house starts you will then borrow to build in stages, it will join up with the land loan and will be only one loan, but payments will increase with each progress payment to the builder. Srini, Agree with this. I am in the same boat as you are. From what I understand (source= my broker), your contribution at the time of land settlement = 10% of land price + Stamp Duty - deposit you already paid to land developer. You start paying EMI based on that loan (interest only). Once your construction begins, you will draw money from your loan as per stage payments agreed with your builder. Your contribution towards your first payment to your builder will be ( Amount payable at Slab stage - deposit already paid). I think your FHOG gets into your bank once you make this payment giving you back your 20K. ( Experts, pls correct me if wrong here). Once you pay your builder the final amount, your loan gets converted to principal +interest ( if you opt for). Hope this helps. Good Luck Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6444 Need advice on the backyard plan above. 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