Browse Forums Home Finance 1 Sep 26, 2011 3:08 pm Hi, I am a first home buyer and planning to get a house and land package worth of 337,000. My Builder won the land through a tender. So far I have deposited 14,000 from my own savings to builder 5% of actual land value (7000) + 5% as bond money (7000). In addition to that I also paid the stamp duty (around 7000) I have plan to put 20% deposit (67,400) My Builder told me that he will mention (14,000) in the building contract, so that when I will apply for construction loan, bank will consider the amount (14,000) as part of 20% deposit. My question here that is it going to work like this ? or I have to organize another 14,000 to met 67,400 mark. Re: Construction loan 2Sep 28, 2011 8:46 am It looks like you have paid $14,000 so there is nothing wrong with putting $14,000 in the contract. If this is the case then the bank will include that as part of your deposit and that would be fine. Note that most banks require you to put in your full contribution prior to them releasing any funds so if you don't have the full 20% now then you may want to split the loan to be a land loan and a construction loan to prevent this problem. Your mortgage broker should take care of all of this for you. Good luck with your new property! Re: Construction loan 3Sep 28, 2011 8:51 am Not sure here if I have mis interpreted your post ? Are you saying that you have already laid down hefty deposits with the builder and you are yet to get 100% assurance of a loan ? WOW - Dangerous stuff ! Too late now, but that should have been the first step (securing a loan) Re: Construction loan 4Sep 28, 2011 2:32 pm ^+1 Building the Drysdale 30 Wallara Waters, Wallan My Blog : http://www.ourwallanhome.blogspot.com My thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=50975 Re: Construction loan 5Sep 30, 2011 11:26 pm ^ +2 You dont need the builder to add the 14k into the contract...you have proof of this arleady...i say stop speaking to the builder and get cracking and speak to a broker or your bank. 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: Construction loan 6Feb 25, 2012 12:17 pm Construction loans are far different from other loans. To be able to understand from the finance loan finance calculator and how it works, you must first know what a construction mortgage is and how it is done. After discussing a brief explanation on construction, we will go to from the finance loan finance calculator usage advantages. Pay day Loans Construction loan 7Feb 25, 2012 4:21 pm mazedau Hi, I am a first home buyer and planning to get a house and land package worth of 337,000. My Builder won the land through a tender. So far I have deposited 14,000 from my own savings to builder 5% of actual land value (7000) + 5% as bond money (7000). In addition to that I also paid the stamp duty (around 7000) I have plan to put 20% deposit (67,400) My Builder told me that he will mention (14,000) in the building contract, so that when I will apply for construction loan, bank will consider the amount (14,000) as part of 20% deposit. My question here that is it going to work like this ? or I have to organize another 14,000 to met 67,400 mark. Just to answer your question and not to make things complicated. If the total of your land+house is $337,000, and if you want to contribute 20%, then the bank will lend you 80%, which is $269,600. So that means out of your own pocket would be $67,400. Now that you have already paid $14,000, all you have to pay before the bank starts lending you money is $53,400. Hope that makes sense. Re: Construction loan 8Jun 04, 2012 11:09 pm eyspy Not sure here if I have mis interpreted your post ? Are you saying that you have already laid down hefty deposits with the builder and you are yet to get 100% assurance of a loan ? WOW - Dangerous stuff ! Too late now, but that should have been the first step (securing a loan) just got curious, say the contract actually states it is subj to finance, would he still lose all the deposits made should his loan app did not prosper? i'm just wondering because i was thinking he should still be able to get his money back,since it was subj to finance anyway or i may be wrong?? Re: Construction loan 9Jun 20, 2012 8:46 am The bank will take the deposit money into consideration. If you are going to borrow 80% to avoid mortgage insurance you will have to pay the costs out of your own cash as well. Re: Construction loan 10Sep 13, 2012 10:55 am Hi i am going to apply for a construction loan with homestart,we are borrowing $120,000 after we have put a dep of $30,000 down,is a construction loan the way to go,wife and i on pension. Re: Construction loan 11Sep 13, 2012 5:08 pm wolfpacker Hi i am going to apply for a construction loan with homestart,we are borrowing $120,000 after we have put a dep of $30,000 down,is a construction loan the way to go,wife and i on pension. Hard to say yes or no without more data.... But if your going to be building then yes you will need a construction loan- also being on pension i would triple check with the bank that you can afford the loan and that they are happy to provide you NOT JUST for the land loan which is simple...but also they would approve your construction loan as well.. Regards Michael 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 19068 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35305 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 |