Browse Forums Home Finance 1 Jul 23, 2015 11:08 am Hi Guys, I'll start with a bit of information to try and fully explain my odd situation and see if anyone can give me some advice.. I applied and was approved for a land and construction loan. Passed all the genuine savings tests and had paid deposits etc. The construction loan was conditonally approved on the condition that the land loan was settled first and on the condition of a valuation. I now have been through settlement on the land, paid the full stamp duty (50% to be refunded when construction starts FHB). Valuation has been completed and come back higher than what I needed (rare - but good outcome). I have paid the builders deposit, and am at the stage of needing unconditional approval on my construction loan to begin. Now for the tricky part - The bank requires proof of genuine savings (AGAIN) in order to fund the construction loan, and they need proof of genuine savings to 5% of the entire cost (land and construction) even though I have already passed these tests and had the land loan funded perviously. During settlement my conveyancer had me pay the full amount of stamp duty reassuring me it would be refunded at the first draw down of construction. This full stamp duty payment dropped my savings below what the bank deems necessary to evidence genuine savings for about 3 weeks (savings are now well over what is needed) so now they are telling me I have to wait 3 months to prove genuine savings to get my construction loan unconditionally approved. After all that, my question is, WHY do I need to prove genuine savings when I have already done it in the beginning? I have a stamp duty refund coming, the FHOG, and well above the needed amount in my offset account. Is there any other way of fast tracking this so I don't have to wait another 3 months and end up waiting the xmas period during construction. Also I'll be paying the repayments on the land loan monthly which is basically throwing away money because its interest only during construction. Re: genuine savings question 2Jul 23, 2015 8:52 pm Hi Mitchiib, You should be able to supply the receipts for the land deposit and slab and have these tick off the requirement. Which bank are you with? As to why do you have to do this - don't get me started!! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: genuine savings question 3Jul 24, 2015 12:44 am Lenders are a strange beast. As Bec mentioned provide the land deposit receipt, and if they question that isn't enough, provide the bank statements pre-land deposit. One thing I wanted to touch upon. You said the conveyancer told you that the stamp duty rebate would happen at first draw down. Are you sure that is correct? FHOG is normally paid at first draw down, but I was of the opinion that the stamp duty rebate could only be claimed after the property was built. Might be worth calling the SRO and asking them to confirm. Cheers Tom Re: genuine savings question 4Jul 24, 2015 7:15 am Yes true - actually that's state deorndsnt NSW is at settlement of land. When did the land settle I forgot to ask. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: genuine savings question 5Jul 24, 2015 7:15 am Dependant! iPhone!!! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: genuine savings question 6Jul 24, 2015 8:18 am Hi mitchiib, Some lenders can be a bit tricky in the genuine savings space, especially rookie credit assessors so be sure to try and get it escalated if you are not getting any success first time round. As long as you can give a lender a trail of where the funds have come from and where they have gone it should not be an issue to get them to proceed sooner rather than wait, especially if you had 5% of the full project cost prior to settlement of the land. That being said are you sure its the gen savings element they are having trouble with and not having sufficient funds to complete? If you are using the FHOG and stamp duty concession as part of your funds to complete the purchase this can leave a slight shortfall upfront due to the timing of the FHOG payment at slab stage... Grant Martin Mortgage Broker 1300 889 743 You can really use anything you want the main consideration would be how it looks once painted/finished - or the look you want. Cabinetmakers use MDF because its cheap… 2 10925 I would say both styles you have pictured are steel. The lower chord of the first pic would be a massive lump if made using timber considering the size of the rafters. If… 1 6802 1 13641 |