Browse Forums Home Finance 1 Mar 03, 2010 7:54 pm A friend of mine have been lucky enough to recently come into some money. Not a huge amount but around $20K. Her boyfriend and her have been talking about buying a house together (maybe building) but she's worried about not having any genuine savings. I think she only needs to hold onto this money, and add to it, for 3 months before the bank will accept it as a deposit, but her boyfriend thinks its six month (secretly, I think he was a shiny new car!! ) She also has a personal loan that is more then this money, but she's been consistently paying that off, & could afford both the personal loan and the mortgage repayments between the two of them. Can anyone confirm how far the banks look back? Do they ask why she has this amount of 'savings' but hasn't paid more of her person loan off? Any advice/help would be great! ~W~ Building our forever home - Lilium Estate Clyde - Land due May 2019 Built our first home - Pakenham - 2011 Re: Question for a friend - Acquired Money 2Mar 03, 2010 7:56 pm When we were shopping around for loans about 7 months ago it was 3 months, but it might have changed to 6 months now - the banks really seem to be cracking down hard on people these days Re: Question for a friend - Acquired Money 3Mar 04, 2010 12:55 pm Hey Frosty, For most of the lenders you will need to demonstrate genuine savings over 3 months. IE. if for example the TOTAL amount was saved from 0 to $20,000 over 3 months this would be acceptable. Because this is a lump sum amount they have the $20,000.00 would need to be held in an account for 6 months. There are funders that will lend using 'non genuine' savings. These funders use the Genworth Mortgage Insurance product which is actually charged at a higher rate. Therefore the mortgage insurance will cost more. Some lenders will take into account 'excess' repayments over and above the minimum repayment on personal loans per fortnight, some will take into account rental payments as genuine savings also. One Strategy that could be looked at. If the personal loan was to be paid out using the money. How long would it take to then save the deposit back up again (this would be genuine savings) ? As now it would be possible to save the repayment amount for the personal loan as well as the extra funds. This may still take another 3-6 months. So it would need to be weighed up. If it is possible to save the $20k again within 3 months or so this may be the quickest way to satisfy the lenders requirements. If under calculations it is going to take longer than 6 months. It may be best just to put the money into a term deposit for 6 months and then it would be considered genuine savings. Hope this helps. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: Question for a friend - Acquired Money 4Mar 04, 2010 3:57 pm Hmmmmm interesting, thanks Trent!! I'll pass on that info. Sounds like a term deposit is the way to go. However, just out of curiosity, we've talked about buying land in the same release - if she uses that Money to buy a block of land, which wont be titled till Nov, will the bank look at how she put the deposit down on the land?? Thanks again, you're a star! ~W~ Building our forever home - Lilium Estate Clyde - Land due May 2019 Built our first home - Pakenham - 2011 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27416 I've just had a look at the website. The company are just building broker's. There are plenty of similar companies that basically draw your plans (they own them so you… 8 11032 You can really use anything you want the main consideration would be how it looks once painted/finished - or the look you want. Cabinetmakers use MDF because its cheap… 2 10032 |