Browse Forums Home Finance Re: Land Loan first and Construction Loan Later (Does it wor 2Mar 15, 2021 8:16 am Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land Loan first and Construction Loan Later (Does it wor 3Mar 15, 2021 11:21 am becjarrettdalton Your broker is the professional in this area - you aren't aware of your mates full circumstances... if your broker is confident affordability is there for the land loan on its own then you should trust her. Ask the question and get reassurance. Perhaps your mates aren't in the same financial circumstances as you - they may owe more money or have less income. I have clients now with land loans (only) and no build approval (yet - pending savings) very much similar to what you describe. Good luck with the purchase Thank you so much, yes I called her up again and she said yes of course, it's easy for you to get land only based on my circumstances. Thanks so much for backing the statement and the useful information. Much appreciated Re: Land Loan first and Construction Loan Later (Does it wor 4Apr 30, 2021 12:09 am Be aware though that credit policies change and it it spossible you could be in a position where you're holding vacant land and can't get a construction loan. If you're finances are plump, you shouldn't have an issue though. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Land Loan first and Construction Loan Later (Does it wor 5Sep 03, 2021 9:33 pm becjarrettdalton Your broker is the professional in this area - you aren't aware of your mates full circumstances... if your broker is confident affordability is there for the land loan on its own then you should trust her. Ask the question and get reassurance. Perhaps your mates aren't in the same financial circumstances as you - they may owe more money or have less income. I have clients now with land loans (only) and no build approval (yet - pending savings) very much similar to what you describe. Good luck with the purchase I just want to know when i buy a land and paid LMI for land amount $180000 and then for construction loan if i put deposit 10% Do i need to pay LMI only for construction loan or Both Land and construction?Asking this cos there is a few confusion when i apply constuction loan i paid LMI more than Land loan.I thought i will pay only pay for construction loan but it looks like i am paying both again. Re: Land Loan first and Construction Loan Later (Does it wor 6Sep 03, 2021 10:18 pm Chan Cheu becjarrettdalton Your broker is the professional in this area - you aren't aware of your mates full circumstances... if your broker is confident affordability is there for the land loan on its own then you should trust her. Ask the question and get reassurance. Perhaps your mates aren't in the same financial circumstances as you - they may owe more money or have less income. I have clients now with land loans (only) and no build approval (yet - pending savings) very much similar to what you describe. Good luck with the purchase I just want to know when i buy a land and paid LMI for land amount $180000 and then for construction loan if i put deposit 10% Do i need to pay LMI only for construction loan or Both Land and construction?Asking this cos there is a few confusion when i apply constuction loan i paid LMI more than Land loan.I thought i will pay only pay for construction loan but it looks like i am paying both again. If you're borrowing more than 80% on either transaction, you pay LMI. The LMI is factored on how much you're borrowing. Construction is usually more than land, so yes, you'll be paying more LMI on the construction. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Land Loan first and Construction Loan Later (Does it wor 7Sep 03, 2021 10:26 pm Noname Chan Cheu becjarrettdalton Your broker is the professional in this area - you aren't aware of your mates full circumstances... if your broker is confident affordability is there for the land loan on its own then you should trust her. Ask the question and get reassurance. Perhaps your mates aren't in the same financial circumstances as you - they may owe more money or have less income. I have clients now with land loans (only) and no build approval (yet - pending savings) very much similar to what you describe. Good luck with the purchase I just want to know when i buy a land and paid LMI for land amount $180000 and then for construction loan if i put deposit 10% Do i need to pay LMI only for construction loan or Both Land and construction?Asking this cos there is a few confusion when i apply constuction loan i paid LMI more than Land loan.I thought i will pay only pay for construction loan but it looks like i am paying both again. If you're borrowing more than 80% on either transaction, you pay LMI. The LMI is factored on how much you're borrowing. Construction is usually more than land, so yes, you'll be paying more LMI on the construction. Mine is less than land price when i purchased the land $200000 put deposit 10% ,And paid LMI $3034 When i apply contruction bank valuation is $400k The construction price is $186000 and put deposit $20000, and construction loan amount $165000 LMI $5659 Re: Land Loan first and Construction Loan Later (Does it wor 8Sep 03, 2021 10:43 pm Is the land loan now rolled into the same loan as the construction loan - ie you have one construction loan that covers land and construction? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Land Loan first and Construction Loan Later (Does it wor 9Sep 03, 2021 10:48 pm In anycase you're paying LMI over the whole borrowing because you did a land loan separately and at over 80%LVR. Now you're borrowing more money and the total lend is still over 80% LVR. So you pay more LMI. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Land Loan first and Construction Loan Later (Does it wor 10Sep 03, 2021 10:59 pm Noname In anycase you're paying LMI over the whole borrowing because you did a land loan separately and at over 80%LVR. Now you're borrowing more money and the total lend is still over 80% LVR. So you pay more LMI. Thanks .Yes it has been a year and half since i bought a land and paying my morgage repayment and now refinance for construction loan which is $185000 and paid deposit $20000 so i think i will only need to pay LMI for constuction loan but i paid for whole loan amount Re: Land Loan first and Construction Loan Later (Does it wor 11Sep 03, 2021 11:50 pm It's really something you should've discussed with your broker, but depending on how exactly they structured there could be opportunity to get lmi refund or take into account the LmI already paid. Re: Land Loan first and Construction Loan Later (Does it wor 12Sep 04, 2021 12:27 am Chan Cheu Noname In anycase you're paying LMI over the whole borrowing because you did a land loan separately and at over 80%LVR. Now you're borrowing more money and the total lend is still over 80% LVR. So you pay more LMI. Thanks .Yes it has been a year and half since i bought a land and paying my morgage repayment and now refinance for construction loan which is $185000 and paid deposit $20000 so i think i will only need to pay LMI for constuction loan but i paid for whole loan amount Not how it works. Sorry. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Land Loan first and Construction Loan Later (Does it wor 13Sep 04, 2021 12:28 am strannik It's really something you should've discussed with your broker, but depending on how exactly they structured there could be opportunity to get lmi refund or take into account the LmI already paid. There isn't in this scenario. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Land Loan first and Construction Loan Later (Does it wor 14Nov 16, 2021 1:17 am becjarrettdalton Your broker is the professional in this area - you aren't aware of your mates full circumstances... if your broker is confident affordability is there for the land loan on its own then you should trust her. Ask the question and get reassurance. Perhaps your mates aren't in the same financial circumstances as you - they may owe more money or have less income. I have clients now with land loans (only) and no build approval (yet - pending savings) very much similar to what you describe. Good luck with the purchase Hi Bec! Would love to hear your advice on my case. I have purchased land first and fixed it for 2 years. Now I'm ready to build. Should I consolidate the loan? And if I do, will I get penalised for not completing the fixed duration? Would I be better off having the loan separated for land and construction? Thank you again Re: Land Loan first and Construction Loan Later (Does it wor 15Nov 16, 2021 1:37 am Hello! Without knowing your personal circumstances can only say generally…. It’s no better or worse to bring it into one loan or not Except - you may be able to have it all interest only if you combine it And you may incur a penalty for breaking the fixed period if the rate is different than todays. On the flip side, you’re unlikely to get the same fixed rate again so if you don’t need to break if (don’t need interest only etc) perhaps think of keeping the two separate still. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land Loan first and Construction Loan Later (Does it wor 16Nov 19, 2021 6:10 pm becjarrettdalton Hello! Without knowing your personal circumstances can only say generally…. It’s no better or worse to bring it into one loan or not Except - you may be able to have it all interest only if you combine it And you may incur a penalty for breaking the fixed period if the rate is different than todays. On the flip side, you’re unlikely to get the same fixed rate again so if you don’t need to break if (don’t need interest only etc) perhaps think of keeping the two separate still. Thanks Bec! I would have thought so too, given really low fixed interest rates prior months ago. thanks for the insights 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 19880 Thanks very much! And would the landscaper/contractor generally involve the engineer or is that something the client would do? Thanks for your help 2 10450 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 36000 |