Browse Forums Home Finance Re: How Much Deposit for Your Home Loan? 83Jul 08, 2009 1:00 am My land has been bought a few years ago by my father for around 700k (sucks that for that type of money at this moment he could buy land that is bigger . He is helping me and my sister build a Duplex which is looking to cost about, 650k for both sides. That means I will need to get a loan half that (say 300k as my dad said he will help a bit more), I have 25% deposit atm. I have some questions about this.......as we are building this, and the money doesnt need to be given all at once, does that mean that we can draw on a certain amount each time we need to pay it? Say 100k for deposit, then the rest in 8 months time on completion?? So I don't pay interest on the whole amount? DA approved Waiting on a few more Builder's quotes. Re: How Much Deposit for Your Home Loan? 84Jul 08, 2009 9:01 am Construction loans generally work that you get approval from bank etc for full amount that you wish to borrow and then you draw down in installments as each bill is presented from the builder, usually in around 5 stages, cant remember exactly when they occur, and you only pay interest on the amount drawn down. Re: How Much Deposit for Your Home Loan? 85Jul 08, 2009 12:38 pm Helyn Construction loans generally work that you get approval from bank etc for full amount that you wish to borrow and then you draw down in installments as each bill is presented from the builder, usually in around 5 stages, cant remember exactly when they occur, and you only pay interest on the amount drawn down. Ok thats very good! Thanks for that helyn. DA approved Waiting on a few more Builder's quotes. low deposit home loans 86Jul 09, 2009 11:47 am There's been relatively little discussion about changes to deposit requirements. Do we have any new members who are just starting up? How are you finding the home loan requirements? Re: low deposit home loans 87Jul 09, 2009 12:48 pm thlo There's been relatively little discussion about changes to deposit requirements. Do we have any new members who are just starting up? How are you finding the home loan requirements? You can still get away with 5%, I didnt do this but my mate did on an established house with No Gen Savings. CBA were prepared for a 5% deposit for my land only even though i didnt take that option up. Re: How Much Deposit for Your Home Loan? 88Jul 09, 2009 12:48 pm We are going for our loan shortly... PM sent Our house thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=18335 Re: low deposit home loans 89Jul 09, 2009 7:25 pm thlo There's been relatively little discussion about changes to deposit requirements. Do we have any new members who are just starting up? How are you finding the home loan requirements? Potential first home buyer here. Had an appointment with a broker last night, which shattered a few of my ideas... Mainly to do with LMI. Basically was told that your deposit must be 20% if any of your deposit is made up of 'non-genuine savings' (ie. Gift from parents). Wouldn't this mean that LMI wouldn't be required? Therefore LMI cannot include any gift amounts. Also wondering about criteria for LMI applicants, as i've only been in my job for 9 months. Partner has been at her job for 2 years. My bank said i'll have to wait til ive been in my job for 12months, broker said that it shouldn't be a problem... So basically told me that he couldn't help unless i use my parents house as equity etc.. Re: low deposit home loans 90Jul 09, 2009 11:41 pm thlo There's been relatively little discussion about changes to deposit requirements. Do we have any new members who are just starting up? How are you finding the home loan requirements? Yes we are in the process of applying for a loan with cba/bankwest - not sure whcih one yet. The broker is trying to look at the best option for us. We are looking at applying for the loan in 2 parts (land & construction) mainly because of the deposit requirements. CBA require a min of 5% deposit (+LMI) on the land - once this is approved - we will apply for constructions 3 months later after the land is titled. Re: How Much Deposit for Your Home Loan? 91Jul 10, 2009 3:22 pm GSK We are going for our loan shortly... PM sent PM replied low deposit home loans 92Jul 10, 2009 3:36 pm chopper Potential first home buyer here. Had an appointment with a broker last night, which shattered a few of my ideas... Mainly to do with LMI. Basically was told that your deposit must be 20% if any of your deposit is made up of 'non-genuine savings' (ie. Gift from parents). Wouldn't this mean that LMI wouldn't be required? Therefore LMI cannot include any gift amounts. Also wondering about criteria for LMI applicants, as i've only been in my job for 9 months. Partner has been at her job for 2 years. My bank said i'll have to wait til ive been in my job for 12months, broker said that it shouldn't be a problem... So basically told me that he couldn't help unless i use my parents house as equity etc.. OK. You have touched on a number of issues; 1. deposit coming from non genuine savings or gift is not assessed the same way by all lenders - you have a variety of options here 2.Lenders Mortgage Insurance is applicable above 80% (normally) for fully documented loans (as in evidence of income) regardless of the gift aspect. You can avoid LMI by offering other security to lower the borrowing ratio down to 80% and borrowing upto 100% of the purchase price 3.Minimum employment rules vary greatly between lenders. However obtaining a home loan while even under probation is not out of the question (although it would be an exception to policy rules). Employment stability is certainly an issue for low deposit home loans. In a nutshell, there may be a solution for you if the combination of your circumstances fit into policy of any of the lenders. You can PM me if you need to discuss further. I hope that helps. Re: How Much Deposit for Your Home Loan? 93Jul 10, 2009 8:26 pm Our first house we borrowed 90% so couldn't avoid the LMI but our second home we had equity so we borrowed 80% so avoided the LMI. That was one thing we didn't want to pay the second time around. Re: How Much Deposit for Your Home Loan? 94Jul 12, 2009 6:01 pm $60k the first time around and $360k the second. Renovation Thread: viewtopic.php?f=31&t=38489 Home Loan Deposit 95Jul 15, 2009 3:45 pm Biff Costanza $60k the first time around and $360k the second. Wow Biff, did you win the lottery or did you just experience a property boom? Re: How Much Deposit for Your Home Loan? 96Jul 16, 2009 9:37 pm Unfortunately no lottery winnings here.........I heard you have to buy tickets to win Property boom certainly helped, so did share market. I bought a run down Victorian Terrace in inner Melbourne in 1996 and renovated it with the help of my chippie BIL. Sold it in 2004 when the market was probably near its high. Now I'm on to renovating my current Victorian terrace but this one will be a keeper. Renovation Thread: viewtopic.php?f=31&t=38489 home loan deposit 97Jul 18, 2009 11:40 am Biff Costanza Property boom certainly helped, so did share market. I bought a run down Victorian Terrace in inner Melbourne in 1996 and renovated it with the help of my chippie BIL. Sold it in 2004 when the market was probably near its high. Now I'm on to renovating my current Victorian terrace but this one will be a keeper. So having been through a boom, does the current gloom worry you? Re: How Much Deposit for Your Home Loan? 98Jul 19, 2009 8:03 pm No, not really although I'm not sure it's all that gloomy out there to be honest. Obviously the boom is gone and after what may be a few small hiccups I expect a more sustainable growth period to follow. Hopefully that will be good for most people. Renovation Thread: viewtopic.php?f=31&t=38489 Re: How Much Deposit for Your Home Loan? 99Jul 22, 2009 2:23 am In today's news they were already revising unemployment projections downwards. How quickly tides turn. Re: How Much Deposit for Your Home Loan? 100Jul 22, 2009 9:48 am i had to have 14 % deposit, ive brought a peice of land and putting a house on it at the same interval...not a house and land package though. building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/ The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19114 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35331 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4831 |