Browse Forums Home Finance 1 Jul 05, 2011 11:25 pm Hi all, Does a deposit placed on a block of land, using you savings, still count as savings when applying for a loan? The block is a while away from being titled, so we can't get the building contract yet to finalize a construction loan, but we need to pay a 10% deposit on the land now. We can do this fine, and still have time to keep saving before going ahead with a loan, but if the deposit counts towered our savings it would make life much easier. Re: Land deposit count as savings? 2Jul 06, 2011 9:23 am Ours was counted. I imagine it would also depend on the bank's valuation of the land. The amount the bank requested at land settlement was our declared deposit amount minus land deposit already paid and minus building contract deposit already paid. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Land deposit count as savings? 4Jul 06, 2011 2:50 pm I believe it does. the reason being is what they look at is the percentage you are borrowing, hence if you have paid 10% for example as part of your land deposit and you have another 10% in savings, then you are only borrowing 80% (which means a total of 20% savings/deposit). Re: Land deposit count as savings? 5Jul 10, 2011 11:01 am Yes Equity in property is the same as a deposit. Building with Fairmont Homes NSW at Glenmore Ridge Lot 1007 Our Builder http://www.fairmonthomesnsw.com.au Our Blog http://drewandrenee.blogspot.com/ Re: Land deposit count as savings? 6Jul 14, 2011 5:09 pm Yes it is counted as a deposit however it may or may not be counted as genuine savings. Basically if you can prove that the money was saved by you or held over 3 months prior to paying the deposit then it will be considered genuine. If you cannot prove this then many lenders will not accept it as genuine savings and you will be asked to prove at least 5% of the purchase price of the land, held in a bank account for 3 months. Depends on the lender. Not all require genuine savings. Where did your deposit come from? In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4822 Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6444 Need advice on the backyard plan above. Should I excavate and cut all of the dirt to level with the house slab or semi-excavate as per photo above? Both left and right… 0 24865 |