Browse Forums Buying Land 1 Apr 23, 2019 7:59 pm Hi, Myself and my fiancee are looking at purchasing land in the next couple of years to build our first home. We have no idea where to start - loans ect are so confusing! We have a max budget of 750k for land and building (to avoid paying stamp duty), and by the time we come to buy the land will have around $150k for deposits. The land we are looking at is around $300-370k We are unsure how the whole process works and which loans to go for and how deposits work ect. Any advice would be greatly appreciated! Re: First Time Land Buyer/Builder Needing Advice! 3May 09, 2019 11:26 am Hi mhclarke! It would be ideal to talk to a loan specialist to be able to get answers to all your questions and potentially help you out in the whole process of choosing and getting approved for a loan. Do you already have a lot in mind? Are you planning to owner build or are you aiming to get a loan to buy land and then a separate mortgage to build your home? Such factors should be considered before you can proceed with other details such as deposits and other expenses involved in getting a home loan. To learn more and to help you with your home loan queries, you can head to our website or talk to one of our loan specialists today. 1300 55 10 45 https://www.intellichoice.com.au/ Put your financial needs in the hands of the leaders in the market. Find out why we’re the mortgage broker of CHOICE! Feel free to PM us for support or info. Re: First Time Land Buyer/Builder Needing Advice! 5May 11, 2019 10:16 pm In my own experience, the process is quicker with a broker and most of them have contacts inside the bank. We previously applied for a loan directly with the bank but took them weeks and then came back with an approved lower amount. We then contacted a broker that only took less than a week with the same bank and we got the loan approved for the amount that we wanted. The broker will also complete most of the paperworks for you. Re: First Time Land Buyer/Builder Needing Advice! 6May 11, 2019 11:57 pm In my personal situation i have previously gone straight to the bank as well as using the services of a broker. I definitely prefer using a broker. They aren’t tied to a particular bank and can compare special packages/deals, rates, loan structure and possibly may also advise you on how to best set up your finances for the future. Re: First Time Land Buyer/Builder Needing Advice! 7May 13, 2019 1:59 pm Brokers get a commission on top of your loan which is paid over the life of the loan it’s called a trailing commission or fee and the brokers although you are charged and you are paying for the loan life don’t tell you how much it is. The Royal Commission into banking criticised this practice and even suggested that this system be scrapped. So don’t pay a broker for the rest of your life for nothing. Re: First Time Land Buyer/Builder Needing Advice! 8May 13, 2019 4:51 pm Zorro6 Brokers get a commission on top of your loan which is paid over the life of the loan it’s called a trailing commission or fee and the brokers although you are charged and you are paying for the loan life don’t tell you how much it is. The Royal Commission into banking criticised this practice and even suggested that this system be scrapped. So don’t pay a broker for the rest of your life for nothing. That’s if you stay with them through the entire life of your loan which imo no one ever stays at the same place forever. I’ve used a bank for my first purchase and 2 different brokers/companies for the next purchases. Would it be correct in saying that their commission stops when you are no longer with them? Re: First Time Land Buyer/Builder Needing Advice! 9May 13, 2019 5:29 pm We've never paid a commission directly to the broker but the bank covers it when we signed up with them for the loan. Re: First Time Land Buyer/Builder Needing Advice! 10May 13, 2019 6:39 pm Facts are facts especially when put forward by a royal commission. If you stop the loan naturally the fee to the broker will cease of course. Just be warned you are adding costs of a third party unnecessarily to your loan for the life of the loan. Re: First Time Land Buyer/Builder Needing Advice! 11May 13, 2019 8:43 pm Generally the additional fees are carried by the bank, not the individual. We recently refinanced with a broker through NAB, the interest was lower through the broker than what we could get directly through the bank. No additional fees etc. Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5840 Can anyone give me any onfo on New Homes WA? Good or bad, hopefully good just need to know if my choice was good or not? Thanks ❤️ 0 8933 So it looks like we finally have some movement on site! Definitely later than expected, but I'll take any progress at this point. I'll drop by over the weekend to get… 5 27289 |