Browse Forums Home Finance 1 Nov 14, 2015 4:19 pm Hi All Very new to buying. We are looking at purchasing land in South-east Melbourne. Cost of land is $262900 for 660m2. 5% deposit already paid. Land doesn't title until June 16. We are first time buyers. Due to our land size we are looking at building a two-storey home. We are currently looking at some project builders, after our recent costs with one of them they came back with a quote of 397k for the house. Worked out about $1044 a SQM. In regards to the home loan what I would like to know I how much would I need to have for a deposit with the above house and land prices and how much could a bank lend us. Our current status is as follows: First-home buyers We definitely will not achieve 20% deposit by June next year. We don't have a guarantor. Combined income of 145-150K No dependent children Liabilities are: Car finance (4 years to go) $742 monthly Credit scores 850 and 699 (two people) We have been at our jobs for over 4 years We currently only have 70K savings Will banks even consider our application or would we need to save even more?? We can definitely afford our mortgage based on the above prices. We are considering going through a Mortgage Broker as well. Any advice would be much appreciated. Thanks Re: HELP!!!! HOME LOAN QUESTION. 2Nov 15, 2015 1:24 pm Hi Mckenz, Generally lenders are looking at a minimum of 5% deposit for the land and the build, so you should have this covered. Definitely get a recommendation for a good broker in your area and they can factor in the other costs & give you tips & get a great offer from a lender for you. Happy building! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: HELP!!!! HOME LOAN QUESTION. 4Nov 20, 2015 11:37 pm McKenz, As Bec alluded to, 5% is a minimum nowadays (plus extra to cover stamps and excess of LMI over the allowable cap). You being a FHB also allows you to claim a grant of $10K to add onto the savings. Doing some back of the napkin calculations with the info you have given, you are good for at least a 10% deposit which strengthens your position (but will still have LMI applied), and should be good servicing wise. However, to get a better idea on what your options are and what you can and can't do lending wise would require further investigation. Cheers, Tom 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 18897 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 35192 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 |