Browse Forums Home Finance 1 Feb 03, 2011 2:19 pm Hi all, I have a full approval for 90% by CBA. I am trying to convert this to 85% using my additional savings. Mr. Broker tells me that I can do that but I have to make sure that I can pay the Stamp Duty from my pocket as it wouldn't be included in the loan if I am going for 85%. My SD is around $10K and I was under the impression that this is included in the loan. Is my broker right when he says I have to pay it out of my pocket or can I still ask him to include the SD in my loan? Thanks Re: Converting home loan -- 90% to 85% 2Feb 03, 2011 4:30 pm His correct. You may be able to get the finance for it through the loan but that doesn't increase the value of the property, so you're back where your started, borrowing 95%. Or in other words, if you include it in the loan, then that would raise your LVR (loan-to-value ratio) because whilst you might include it in the loan, its not included in the value of the property. Re: Converting home loan -- 90% to 85% 3Feb 03, 2011 6:40 pm Thanks Sheepdog. So I am assuming the same would be the case if I am borrowing 90% instead of 85% viz. I have to comeup with SD from my pocket. I am sure he told me when I applied for 90% that the SD was included in the loan. I am catching up with him again on Tuesday to discuss my options. Just trying to keep the loan to minimum. Maybe other option would be extra repayments later. Cheers Re: Converting home loan -- 90% to 85% 4Feb 04, 2011 6:31 pm Your broker is right, it's NOT included into the LOAN normally, UNLESS the broker included into your loan application ( unlikely unless you instructed him to) Which option you chooses ( pay your own SD or borrow) depends on how much the SD will take your LVR to - as you will have to pay the extra LMI (LMI premiums excelerate quite a bit from 92%+ LVR ) Regards Michael. Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Converting home loan -- 90% to 85% 6Feb 07, 2011 12:49 pm Ask your mortgage broker for a funds to complete calculation so that you can both work out if 85% is sufficient or if you need to go for 90% instead. Note that if you can drop the loan to 85% then you may qualify for no LMI or discounted LMI with some other lenders so it may be worthwhile not proceeding with CBA. Re: Converting home loan -- 90% to 85% 7Feb 08, 2011 10:00 pm Thanks jb_money yeah, thats the plan. reduce or eliminate the LMI. I am not relly aware of any lenders out there ( apart from non-bank lenders) who are offering any similar deal as CBA. the closest I came across was NAB, which had rate saver for 1 year. Cheers Re: Converting home loan -- 90% to 85% 9Feb 22, 2011 10:13 pm Thanks lunchtime. yeah i guess thats the best option, especially when I dont exactly know what the site cost would be, land settles in mid april, maybe would need to use the money for extra surprises * hope not * 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 18896 2 9385 If I hire a contractor to convert a window to a sliding door will I need to show them Council approval paperwork? That is, if I want to take a risk of carrying out the… 0 12999 |