Browse Forums Home Finance Re: do you need a deposit for a building loan? 2Oct 19, 2010 5:05 pm contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: do you need a deposit for a building loan? 4Oct 19, 2010 5:53 pm Dear J.K. Rowling, Your books are entirely unrealistic. I mean, a ginger kid with two friends? Sincerely, Anonymous Re: do you need a deposit for a building loan? 6Oct 19, 2010 6:01 pm Dear J.K. Rowling, Your books are entirely unrealistic. I mean, a ginger kid with two friends? Sincerely, Anonymous Re: do you need a deposit for a building loan? 7Oct 19, 2010 6:40 pm viewtopic.php?f=31&t=37229 - our Iris 4! Re: do you need a deposit for a building loan? 11Dec 15, 2010 9:27 pm so i saved 5% of my building cost and after getting my building loan just about done my bank has asked that they want that 5% grrrr i got told they just wanted to see it in my account for 3 months. I gave 52k for my land loan and i have spoken to some mortgage brokers and they have said that was more then enuff funds to cover land loan and building loan can anyone share thoughts on my problem? Re: do you need a deposit for a building loan? 12Jan 11, 2011 8:44 pm Hi S&M, We purchased a block of land at Stonecutters Ridge in Sydney, and then built a house on it. Not a house & land package. Land, then House. Our builder required 5% payment to prepare tender, plans, and lodge for approval with estate board and council. Our lender would not give unconditional approval for the construction loan until we had approved plans to submit to them. So, in order to get the plans approved and therefore our loan approved, we had to pay the builder the first 5%, which was then deducted off the first progress payment invoice. This means that there will be approx 5% leftover at the end of our construction against our approved loan amount, and any leftover funds will go back into our bank account. So we will get that 5% back eventually, when the build is completed... Re: do you need a deposit for a building loan? 13Jan 12, 2011 3:37 pm Hi hparis, We did the same thing, (paid the 5% deposit out of our funds, whilst the loan is for 100% of the build). I spoke to my broker about this a while ago and all we have to do is send in a request for drawdown of this amount including the invoice and receipts for the deposit along with details of our own account for the money to be paid into. Apparently we can do this at any time. I am waiting toward the end of the build just so that I don't have that large amount sitting in my offset account. It makes no real difference until the build is finished for us because it is either extra debt minus the amount in the offset account which equals zero or zero now. View our blog at: http://room4acubby.blogspot.com/ Re: do you need a deposit for a building loan? 14Jan 12, 2011 6:05 pm We also purchased the land, then 2 years later signed a building/construction loan. We had to have the 5% deposit and have it in the account for a certain amount of time, so the bank could see that we were in a position to pay the mortage when it does come through. They say it has to be sitting in there for a certain period of time, but I am not sure how fussy they are on that as we didn't have it there for a long period of time. That was for the land loan. For the building loan we also had to have a deposit of 5% and that comes off the total price of the loan...so you are not loosing money along the line the bank just wants to know you have the means to put away enough money to service the loan. The road to success is always under construction House completed April 2011 - slowly making it a home... Re: do you need a deposit for a building loan? 15Jan 12, 2011 6:39 pm Well it's all sorted out I have paid the 5% to the builder and my bank has written me a letter to say they will release the funds into my account once the first payment of build starts the only reason is I need that money for my wedding Re: do you need a deposit for a building loan? 16Jan 25, 2011 3:36 pm S&M hi people just wondering if you need a deposit when applying for a building loan or do they use the fhog. Reason im asking is that my bank has asked me to show savings of 5% of the total building cost didnt explain much more but they didnt say they wanted it BUT banks in my eyes a shifty and will do anything to get money up front anyone can help? they just want to see you have 5% genuine saving. to make sure you have a good habit of saving so you can meet the mortgage repayment for the next 10-15 years. FOHG , GIFT, Tax return and unexplained lump sum are not considered genuine saving. Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au 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 19112 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4830 Looking to start the journey of becoming an owner builder in SA. Feeling pretty (overly) confident on the building and construction details, but really struggling to find… 0 8422 |