Browse Forums Home Finance 1 Dec 05, 2008 6:15 pm Our land is due to settle monday and I thought all will be good...
we still have 32k of deposit to pay which is made up of 20k of our cash and 12k of FHOG. I spoke to my broker and said do I need to pay the 20k towards the land or the house and they said either one will be fine. Anyway I get a call from my conveyancer this morning saying I need 25k.. The bank apparently will only realease 80% of the land value (has anyone heard of this before??) so I have to pay 20% of it. But I only have 20k as the fhog of 12k is going towards the house. I can get 5k extra but I still need to pay another 6k deposit to the builder and would that be able to come out of the bank loan? Also can I get my 5k back from the fhog as if not we have paid 5k more than what our deposit is meant to be. I pretty angry now with my broker.. who said it is the bank who is wrong.. so I don't know who is right and who is wrong... Re: Problems with land settlement.... 2Dec 05, 2008 6:33 pm I can’t help you, but boy do I sympathise with you! Internal and External Building and Colour Consultant Online - Worldwide http://www.denovoconcepts.com sydney home loan advice centre, sydney home loans 3Dec 06, 2008 4:03 pm wakeboardandy Our land is due to settle monday and I thought all will be good... we still have 32k of deposit to pay which is made up of 20k of our cash and 12k of FHOG. I spoke to my broker and said do I need to pay the 20k towards the land or the house and they said either one will be fine. Anyway I get a call from my conveyancer this morning saying I need 25k.. The bank apparently will only realease 80% of the land value (has anyone heard of this before??) so I have to pay 20% of it. But I only have 20k as the fhog of 12k is going towards the house. I can get 5k extra but I still need to pay another 6k deposit to the builder and would that be able to come out of the bank loan? Also can I get my 5k back from the fhog as if not we have paid 5k more than what our deposit is meant to be. I pretty angry now with my broker.. who said it is the bank who is wrong.. so I don't know who is right and who is wrong... Hang on a minute He reckons he knows better than a bank that does thousands of these transactions every year. As the agents of State Revenue for the processing of the first home grant, the bank also knows when the grant will be paid to you. Your broker/lender/bank staff knew what an 80% home loan means. Of course the bank will only release 80% of the land value if that is what was submitted to them in the land loan application. The first home owners grant is not made available until the first progress payment is made to the builder by the bank so the bank can't cover that difference for you as they don't know whether your builder will meet the timing requirements of the FHOG. I don't know the full circumstances of your loan but it sounds like the shortfall could have been avoided by a slightly different loan structure by thinking it through more diligently. Re: Problems with land settlement.... 4Dec 06, 2008 4:32 pm It isn't an 80% loan, that is the problem.. We are borrowing 87% of the amount but not paying any mortgage insurance due to having security from another property.
there is no actual shortfall. Our deposit + loan amount equals the full amount payable for both land and house. It is not a seperate loan for the house and land it is the same loan. The land only equals about 40% of the loan amount but they are saying they will only release 80% of the land value for the land. It just doesn't make sense to me.. our broker is owned by the same company as our builder so they pretty much only deal in contruction loans so that is why I'm pretty sure they wouldn't stuff it up. I spoke to my broker last night and he said he will fix it monday. He said something about a simultaneous settlement so the bank can release the full amount for both house and land. Re: Problems with land settlement.... 6Dec 10, 2008 9:49 am Finally all sorted now...
It seems our broker was right and the bank was wrong!! The problem seemed to happen because we have a LVR of under 80% due to having security worth more than the total loan. However we are borrowing 87%. Someone at the bank put it in the "wrong pile" and it got put through as an 80% loan. It has now been fixed and we now owe a deposit of $809.03 for the settlement today, which is a big difference compared to the 27k they wanted on friday!!!! Re: Problems with land settlement.... 7Dec 11, 2008 12:58 pm wakeboardandy Finally all sorted now... It seems our broker was right and the bank was wrong!! The problem seemed to happen because we have a LVR of under 80% due to having security worth more than the total loan. However we are borrowing 87%. Someone at the bank put it in the "wrong pile" and it got put through as an 80% loan. It has now been fixed and we now owe a deposit of $809.03 for the settlement today, which is a big difference compared to the 27k they wanted on friday!!!! Hearing the terms "land settlement" and "problems" in the same sentence make me twitch now, isn't that right Thlo? Glad yours was an easy fix! The moral of the story is don't trust what the bank tells you, despite doing the amount of transactions they do they still stuff up a lot! Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com sydney home loan centre, home loan advice 8Dec 12, 2008 3:31 pm wakeboardandy Someone at the bank put it in the "wrong pile" and it got put through as an 80% loan. somehow getting the wrong LVR because of being placed in the wrong pile doesn't make sense in this line of work, but I'm glad it worked out. stevep79 can provide moral support as he's been through the experience not with one but 2 banks. Re: sydney home loan centre, home loan advice 9Dec 12, 2008 4:03 pm thlo wakeboardandy Someone at the bank put it in the "wrong pile" and it got put through as an 80% loan. somehow getting the wrong LVR because of being placed in the wrong pile doesn't make sense in this line of work, but I'm glad it worked out. stevep79 can provide moral support as he's been through the experience not with one but 2 banks. The LVR was right it was the total loan amount that was wrong... anyway the bank admitted their fault which was good and got it fixed. sydney home loan, sydney home loan centre 10Dec 12, 2008 4:27 pm sorry, i didnt mean to sound like making fun. It's just that you hear a lot of similar excuses in lending. Yours probably was a simple misunderstanding between the broker and the assessor. I am not a brick expert, but rendering would be 1 option, it would be costly to do the entire house though.... 2 7094 Hi all, has anyone been ask to do the weeds in their property while in the middle of build? We are under the impression that they are in control of the site while they… 0 3992 Have had a few issues with out recently done bathroom floor. Probably around 18 months old First there has been been a crack running through a grout line which I put… 0 3040 |