Browse Forums Home Finance Re: The grand plan and how to finance it 4Feb 07, 2014 6:18 pm Not sure if there is a misunderstanding, but the OP would actually only have access to approx $210k of additional funds, i.e. $600k - $390k (being the total debt minus the existing debt) unless they pay for mortgage insurance. With the inheritance, this might be enough, depending on the build costs. Obviously they will also need sufficient income to service that level of debt (possibly while renting somewhere else) Re: The grand plan and how to finance it 5Feb 09, 2014 11:20 am hello. my wife and i have found a house we love we took the chance to put the offer through and get that accepted based on finance approval. i have a few questions though that no one seems to answer or know of. we are putting down 5% deposit only because we found something out of the blue. this is around $20500. and we will be lucky enough to have our stamp duty covered by a parent as a gift. my question is based on 5% deposit. can mortgage insurance be put in over the top of the finance amount of $411000 and be ok? and can all bank fees be included in the home loan at this point. i earn $70-$80k and my wife earns $50k or so. we have a car loan repayments of around 550 per month. i think our financials sounds doable my stress is just getting the initial loan approval with no upfront fees besides a broker and the stamp duty's in which we can get covered. also we just come back from a honey moon. so my pay has been significatly lower over the course of a month however the over all year still shows i earn respectable enough money do you think this would change a lenders opnion on lending based on this information. hope this doesn't sound to confusing! stressed thinking and trying to work it out. chris. Re: The grand plan and how to finance it 6Feb 09, 2014 11:40 am Chrisv, it really depends on the lender. Some will only lend up to a maximum of 95% total. Others will lend up to 95% plus allow an extra 2% (so 97% total) for LMI, etc. Others are no doubt different again. I would speak to a mortgage broker who will know what the different lenders do and don't offer - you won't be obliged to go through them but it will at least give you an idea of the different options for your specific circumstances. Just remember that brokers don't usually cover every lender out there. ~ Anne I used to be indecisive but now I'm not quite sure. Eeek - We're embarking on a knockdown rebuild! Click here for our build thread Our blog: kdrhome.wordpress.com Re: The grand plan and how to finance it 7Feb 10, 2014 12:38 am Chrisv, just to add to Slightly Random's post, as mentioned you would need to find a lender suitable to your needs. As your loan will be 95%LVR, the LMI will be substantial and dependent on the lender they may cap it above 95% however there is really only one or two that will do unlimited LMI cap. The majority only allow 2% at best which would mean you would need to partially fund some of it if you went via these. Then you have the issues of if your 5% deposit is genuine savings over 3 months, how good is your employment history, what is the balance of the car loan liability, are there any more? Generally when looking at a 95% loan, the loan application needs to be strong. You have done the right thing by using a subject to finance clause, it allows you to back out of the deal without losing your deposit if you can't happen to obtain finance. Cheers Tom Re: The grand plan and how to finance it 8Feb 10, 2014 6:33 pm chrisv my question is based on 5% deposit. can mortgage insurance be put in over the top of the finance amount of $411000 and be ok? and can all bank fees be included in the home loan at this point. As slightly Random and PLC aka Tom was saying, there are some lenders that do lender 95% and allow to include LMI in total 97%LVR. However it does depend on your overall situation and what type of lender. There are very strict guidelines which will involved your credit file as well. Unfortunately banks will not be able to include all the fees after you have pushed the LVR to 97% to include LMI. However there are some brokers with access to lenders that may be able to go over that threshold by $20,000 which can be used for personal use. you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 58070 Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20522 i thought the flipped plan initially but bec i want narrow pathway from entry to dining (dont like bend), also cannot fit the… 7 17347 |