Browse Forums Home Finance 1 Aug 21, 2009 2:54 pm Hi All, Just wanting to find out from other first home buyers when they actually received their grant. We have used a small portion of it towards our deposit with M@tricon and I am aware that M@tricon will receive the grant at base stage and take their portion from that. They told us that they will then hold on to the balance untill the house is complete in case of any other charges along the way! I cant think of what other charges there could be after slab is down, besides we have fixed site costs! I would rather the money be sitting in my account than in M**tricons earning interest! I have searched for info on the net and came across the SRO website that does seem to say that we (the actual home owners) are entitled to it once slab is down. Is the fact that the builder holds onto just something that they choose to do or is it actually a requirment by all builders? Should I push them to give me the balance of the money once they receive it or should I just wait til the house is complete? I dont know whats standard as i have never bought or built a house before, so dont know what to expect! Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 Re: When do we receive our First Home Owners Grant? 2Aug 21, 2009 3:19 pm The way I see it is, if your builder needs some of it for the deposit, that's fine. When they receive the grant, they should take out that deposit and give whatever is left to you.. either by cheque or eft payment. The fact you could make changes or need to pay more money after is irrelevant, it's up to you where that money comes from, they should not hold that money as a "safety net". Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! Re: When do we receive our First Home Owners Grant? 3Aug 21, 2009 9:36 pm I agree completely! Im just unsure as to whether we may have signed something at the beginning of the process giving them authority over the funds. This may not be the case though, it may have just been the FHOG form that we filled. There is so much paper work to get through at the start that I really cant remember. They have verbally told us that we are not entitled to the funds untill after handover! Im going to look further into this though as i think its a fair bit of money for them to hold onto! Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 Re: When do we receive our First Home Owners Grant? 5Aug 23, 2009 8:33 pm I was researching this topic a bit further on this forum and the SRO website earlier today and came across some information that has stressed me out completely ! Apparently you need to have commenced construction within 26 weeks of signing the HIA building contract to be eligible for the additional First Home owners boost! We signed our contracts on the 25th February 2009 and the Land was forecast to be complete by the 13/03/09. The land is only about to settle next week due to delays by the developers. This means that we wont be looking at commencing construction until mid October once M@tricon has received the building permit and completed ordering. This takes us well over the 26weeks!!!! We had chosen to build as opposed to buying established due to that additional $14000 boost. Not because we needed it to be able to by a house, as we did already have savings but we also have a personal car loan that I was wanting to use that extra money to pay off completely before moving into our new home and having to pay a mortgage! The SRO website did state: "In limited circumstances the Commissioner may approve an extension to the commencement and completion date where the delay was outside the control of the parties and could not have been foreseen at the time of entering into the contract. A request for an extension to the commencement date will only be considered once an application for the First Home Owner Grant has been received and each request for extension will be considered on a case by case basis". Has anyone been in the same situation and if so what has been your outcome? Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 Re: When do we receive our First Home Owners Grant? 6Sep 01, 2009 6:51 pm My understanding is that the government releases the funds to your bank when the slab is poured and the bank will use it to make the first progress payment and the sum is given to you at settlement? I actually have a question if anyone can answer it, for a construction loan do the bank take the LMI at the first progress payment when the slab is poured or at settlement? We are planning to use part of our grant to pay for LMI and the guy at the bank said it would be no problem but was just curious. Building Sandhurst 36 Porter Davis Currently Fixing Re: When do we receive our First Home Owners Grant? 7Sep 04, 2009 2:54 pm Hi Chickad23, We also have a construction loan but our LMI was capitilised on our mortgage and was drawn on our Land settlement. Meaning that we actually don't pay the LMI ourselves, the bank just increases you loan to allow for it, eg) bank lends you $250K towards you home then adds the LMI to that. So if you are paying $5k LMI your total mortgage at the end is $255k. But as I mentioned mine was drawn at land settlement and for the full amount, so they funded me for the land and added their fees on top and the LMI. I hope this makes sense! This building thing is a real learning experience! Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 Re: When do we receive our First Home Owners Grant? 8Sep 04, 2009 3:17 pm Borrower has to make their contribution before the lender will start advancing funds for construction. However if the First Home Owners Grant covers the full contribution then that should solve that issue. Re: When do we receive our First Home Owners Grant? 9Sep 04, 2009 11:30 pm I spoke to my broker about it today and as we have paid a 5% deposit on the construction loan she said that the bank will deduct any fees including LMI from the grant and pay us the balance. I forgot to ask if it would be when the slab was poured or if at settlement but doesn't fuss us either way. Building Sandhurst 36 Porter Davis Currently Fixing Re: When do we receive our First Home Owners Grant? 10Sep 05, 2009 8:29 am We also put 5% deposit on the land & construction but they still capitalised the LMI! Maybe different banks do things differently! Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 First Home Owners Grant advice 11Sep 07, 2009 12:10 am Shelz Maybe different banks do things differently! The way the First Home Owners Grant is paid is uniform across all lenders. Re: When do we receive our First Home Owners Grant? 12Sep 07, 2009 10:23 am thlo Shelz Maybe different banks do things differently! The way the First Home Owners Grant is paid is uniform across all lenders. The way the FHOG is paid may be uniform accross all banks but the way the LMI is taken may be different. Im new to all of this so I have no idea, but my LMI has definatley been added to my mortgage at land settlement throuogh the CBA. Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 Re: When do we receive our First Home Owners Grant? 13Sep 13, 2009 4:03 pm Well clearly my broker has given me the wrong information as I checked my bank account the other day and a second loan has now been opened for the construction loan as our construction is due to start in a week and wow surprise surprise the first draw down was the exactly amount of LMI we owed. I rang her to say well you told us we could use the grant not to mention so did the man at the bank and she said oh just put the grant back onto your mortgage it is the same thing. UMMM no it isnt but what can you do! For our land loan they took the amount required for LMI out of our bank account so not sure why it was done in 2 different ways especially when we have requested it not to go onto our mortgage! Building Sandhurst 36 Porter Davis Currently Fixing Re: When do we receive our First Home Owners Grant? 14Sep 19, 2009 5:02 pm My understanding of the FHOG is that it can only be used on the loan. So anything the loan covers the FHOG can be put towards including stamp duty. It cannot be payed out to the customer. THLO, is this correct? Gravity. Its the law. At lock-up stage(lock-up stage) https://forum.homeone.com.au/viewtopic.php?f=31&t=25438 Re: When do we receive our First Home Owners Grant? 15Sep 19, 2009 11:03 pm The FHOG is given to any first home buyer as long as you qualify for it. In my case a small portion of it is going to the builder as part of the deposit but the rest is given to us. It depends on your individual situation. I paid for my stamp duty and any other fees myself, they didn't come out of the FHOG! If your are using the full FHOG for your deposit then I guess you wont see any of it but there are also people who have a deposit that will receive the FHOG money themselves. Building: Santorini 26 with M*tricon Where:VIC Site Cut 29/09/09 Slab Complete 09/10/09 Frame Complete 22/10/09 LockUp Complete 17/11/09 Fixing Complete 03/12/09 **My Thread:[/i] viewtopic.php?f=31&t=23110 Re: When do we receive our First Home Owners Grant? 16Sep 20, 2009 12:37 am We received a letter telling us that we would be eligible for the grant and that it would be paid to our bank upon the first progress payment (when the slab is poured) and that the money would be available to us the day of settlement. We have paid all stamp duty etc and the bank put our LMI on our loan so they money does goto us as we paid all deposits etc. Building Sandhurst 36 Porter Davis Currently Fixing First Home Owners Grant 17Sep 23, 2009 1:02 pm trepidman My understanding of the FHOG is that it can only be used on the loan. So anything the loan covers the FHOG can be put towards including stamp duty. It cannot be payed out to the customer. THLO, is this correct? Not quite. FHOG can be paid out to the applicant. However if you applied though an agent (i.e.your lender) the grant is paid to your agent first and you need to instruct them to transfer to whichever account you like. Re: When do we receive our First Home Owners Grant? 18Oct 19, 2009 1:33 pm It seems that it either varies or everyone is receiving different info re: how the FHOG is dispensed. My understanding is that the construction payment comes from the FHOG. Re: When do we receive our First Home Owners Grant? 19Oct 19, 2009 1:33 pm "Construction" I was referring to concrete slab. Re: When do we receive our First Home Owners Grant? 20Oct 19, 2009 2:08 pm Hey Shelz, We have just finished building and we also went through CBA. We had to use half of our FHOG towards the house, so when the first progress payment was made, the FHOG was released to our bank. The bank put half of it directly into my account straight away and the other half went into my mortgage account. The bank won't automatically give you the FHOG at slab stage, you have to request it and then they'll do it. Just ask your consultant at the branch to follow it up. chickad23 I rang her to say well you told us we could use the grant not to mention so did the man at the bank and she said oh just put the grant back onto your mortgage it is the same thing. UMMM no it isnt but what can you do! For our land loan they took the amount required for LMI out of our bank account so not sure why it was done in 2 different ways especially when we have requested it not to go onto our mortgage! Chickad23 we had the same thing, we wanted to use the FHOG to pay those fees, and we just transferred the money over to the mortgage account. So she was giving you the right info, but they probably should've told you that at the start. Construction loans and land loans have different rules, it did my head in when we started building because no one would explain to me why it was so different in how they worked. Built with Dennis Family Homes Cascades on Clyde All moved in now!!!! 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 27706 We already paid for somfy motors for the blinds. 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