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 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 |