Browse Forums Home Finance Re: deposit for home loan 4Mar 26, 2009 5:43 pm fully hi all, sorry if this has been discussed before, but im close to considering a new house and land package that is due to start construction next month with settlement in sep 2009. I will have 20% deposit prior to settlement to ovoid mortgage insurance, but im wondering can the gov first home owners grant, VIC $26,000 be used as part of the 20% deposit,.. Eg, house+land including stamp duty $320,000 5% deposit required for housing company $16,000 my funds , rest on settlement. + the $26,000 grant + $27,000 my funds. total, 69,000 which is just over 20%, or do they not take the first owners grant into consideration? Thanks Hi fully, I must say the questions used to be simpler here, they are getting to have more and more detail. Of course you can use the grant as part of your deposit. Genuine savings rules only apply at the higher borrowing ratios any way. The key issue for you is the timing, depending on how your loan settles it may be fine. Will you have 20% on the settlement of your land if it is settling first, is the primary question for you. 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 35332 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4831 |