Browse Forums Building A New House Re: Land loan & construction loan 14Apr 03, 2017 1:56 pm nicolawhitelaw We did a land loan and construction loan separate. Process was easy for us. We went with the Newcastle Permanent. The reason why we chose the loans separate is because we wanted to settle on the land and we hadn't 100% confirmed our plans with our builder. So decided to settle on the land and fix our home loan rate. Then did a construction loan a couple of months later. Only slight annoying thing was that when we applied for the construction loan after settlement of the land, the LMI hadn't been received on QBE's end from our lender (even tho we paid it on settlement) as the Perm do 2 batch payments a month with other people's LMI so we had to wait 2 weeks for the payment to go through as the calculations were including both payments of LMI if that makes sense. Building with Perry homes: viewtopic.php?t=84756 Do you mind me asking what rate Newcastle permanent gave you - my broker has only put forward NAB and Suncorp for our build loan, and they are significantly more expensive than our current ING loan. Re: Land loan & construction loan 15Apr 12, 2017 7:55 pm candiceb nicolawhitelaw We did a land loan and construction loan separate. Process was easy for us. We went with the Newcastle Permanent. The reason why we chose the loans separate is because we wanted to settle on the land and we hadn't 100% confirmed our plans with our builder. So decided to settle on the land and fix our home loan rate. Then did a construction loan a couple of months later. Only slight annoying thing was that when we applied for the construction loan after settlement of the land, the LMI hadn't been received on QBE's end from our lender (even tho we paid it on settlement) as the Perm do 2 batch payments a month with other people's LMI so we had to wait 2 weeks for the payment to go through as the calculations were including both payments of LMI if that makes sense. Building with Perry homes: viewtopic.php?t=84756 Do you mind me asking what rate Newcastle permanent gave you - my broker has only put forward NAB and Suncorp for our build loan, and they are significantly more expensive than our current ING loan. Sorry late reply. 3.84% variable Building with Perry homes: http://forum.homeone.com.au/viewtopic.php?t=84756 Re: Land loan & construction loan 17Apr 26, 2017 1:18 pm This is all very useful information as I'm heading down this track over the next 2 years. When it comes to a construction loan, whats expected financially upfront for a deposit? I feel this will me the major mood killer in making this work efficiently I have a minimum of 12 months till settlement, a further 12 months to start the build and 24 months in total from settlement to when we need to be residents Re: Land loan & construction loan 18Apr 26, 2017 2:38 pm Hello, Similar experience to those above. We were never expecting to build but found a good block in Albury for 146k. Didn't want to rush the build process so we got a land loan through a broker (ANZ 4.03%). We put down a 10% deposit but ANZ and NAB asked for 5%, perhaps considering our savings history and no other debt. When construction starts next month or so our construction and land loan will combine, still at 4.03% and we will pay interest only till completion. To complete the build ANZ has asked for another 5% of the build price, however we will put down about 12%. Hope that helps happy to answer other questions. Re: Land loan & construction loan 19Apr 26, 2017 2:53 pm In our case we put all we wanted to contribute into the land loan to keep it as small as possible and avoid LMI. Then when it came time for the construction loan we used the equity in the land as the deposit. Anything we saved in the meantime we held on to for post handover things. 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 19108 DIY, Home Maintenance & Repair That laser level looks lovely! We bought one for less than a quarter of that price off eBay. It worked really well for us and it's still going now, five years later. After… 1 16713 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5329 |