Browse Forums Home Finance 1 Jan 29, 2010 9:22 am Is it possible for us to use our first home owners grant as part of our deposit, we are constructing not buying already established. Re: FHOG as deposit? 2Jan 29, 2010 9:23 am As far as I know, you can’t, we tried to go down this path but everyone we spoke to said it can’t be done Current status: Busy making the house our home Built PD Francis 29 on our 576m2 block at Reflections in Tarneit Reflections Estate Thread Our Build Thread Re: FHOG as deposit? 4Jan 29, 2010 9:54 am My FHOG went straight to bank and came off my mortgage. They would not give it directly to me. Re: FHOG as deposit? 5Jan 29, 2010 11:04 am These days you still have to satisfy most lenders minimum deposit requirements then you can use the FHOG above and beyond that amount. But since the credit crunch the amount of lenders whom will allow you to use it within the minimum requirements have diminished hugely. Some things are worth waiting for. Re: FHOG as deposit? 6Jan 29, 2010 11:14 am In our case, the bank considers it to be an addition to our deposit. So they consider our total contribution to the loan to be X deposit of our money + FHOG and the FHOG will go directly to the bank. Our Build - Places Fairhaven 23+ - https://forum.homeone.com.au/viewtopic.php?f=31&t=28045 Our Landscaping - Belial's Backyard - https://forum.homeone.com.au/viewtopic.php?f=19&t=45375 Re: FHOG as deposit? 8Jan 29, 2010 8:07 pm I had a huge stressful wait, whilst my broker fought with the bank to let me use my FHOG as my deposit. The rule used to be that you don't get the FHOG until the slab is poured, so most people can't use it, but I was fortunate that I bought a unit and the slab had already been poured before settlement so I could use the FHOG. I ended up winning and am now finally about to get the keys next week after a 14 month wait. Re: FHOG as deposit? 9Feb 22, 2010 2:38 pm Using FHOG as the only component of a deposit will not be accepted by most lenders. For those lenders that still do accept it are unlikely to have it approved by mortgage insurers (which they need to do). A common sense question is always asked; "Why is the borrower unable to save any deposit?" So it does pay to demonstrate some savings. Re: FHOG as deposit? 10Mar 19, 2010 8:55 pm Depends which state you are in. In WA you can go to Keystart who requires a 4% deposit, 2% gen savings and the rest can be made up of FHOG. They also dont require MI so is also good that way. Downside is the rate, it is a little higher than the norm, last time I looked I think it was around the 6.4% Re: FHOG as deposit? 11May 16, 2010 3:21 pm You would be very lucky to find any funder which does not demand savings or equity. In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4814 |