Browse Forums Building A New House Re: Deposit for construction loan - worrying myself sick!!! 2Jul 28, 2009 11:45 pm 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: Deposit for construction loan - worrying myself sick!!! 3Jul 28, 2009 11:55 pm A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Deposit for construction loan - worrying myself sick!!! 6Jul 29, 2009 12:22 am A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Deposit for construction loan - worrying myself sick!!! 9Jul 29, 2009 4:17 pm Hi there, I am certainly no expert on this matter.. but my understanding is, it is better to get your house and land valued together as they value it higher (so you should get your contract drawn up for the bank first, before approaching them for a valuation) *please correct me if i am wrong here* Anyway I am sure your broker can help you better understand. Why not give him a call.. I am sure he wont mind, since you are so worked up about it.. My concern is.. if you are unable to save much for a deposit.. will you be able to afford the repayments, insurance, rates etc... what if the interest rates go up? -Sha Re: Deposit for construction loan - worrying myself sick!!! 10Jul 29, 2009 4:57 pm Quote: I am certainly no expert on this matter.. but my understanding is, it is better to get your house and land valued together as they value it higher (so you should get your contract drawn up for the bank first, before approaching them for a valuation) *please correct me if i am wrong here* I had the opposite. Land was valued fine at land purchase and then slightly less for when it was total house and land together. Quote: My concern is.. if you are unable to save much for a deposit.. will you be able to afford the repayments, insurance, rates etc... what if the interest rates go up? If you were paying a land mortgage and rent, it would be very similar to full mortgage? Re: Deposit for construction loan - worrying myself sick!!! 11Jul 29, 2009 7:10 pm Sierra Quote: Quote: My concern is.. if you are unable to save much for a deposit.. will you be able to afford the repayments, insurance, rates etc... what if the interest rates go up? If you were paying a land mortgage and rent, it would be very similar to full mortgage? We are currently paying for the mortgage for the land and rent, as well as insurance, so we are very confident that we will have no difficulty in paying the full mortgage. As a matter of fact, the land mortgage and the rent that we are currently paying actually comes up to more than we will be paying when we have left this crappy little rental of ours and are paying the full mortgage! Anyway, I have left a message for my broker to contact me, but I'm going to stop stressing about it. It's out of my hands so whatever happens, happens. Worrying and fretting certainly isn't going to help, so I'll just cross my fingers and patiently wait to hear what the bank says. Re: Deposit for construction loan - worrying myself sick!!! 13Jul 29, 2009 7:21 pm Maybe you should check with your builder about what sort of deposit you had to put down. We had to put down a 3% deposit at our tender appointment and a 2% deposit (to make a total of 5%) at our contract appointment. At the time we were worried we wouldn't quite get there as our land had just settled and we paid all of our stamp duty and lmi out of our savings. We asked if the bank would be able to help us with the deposit required and we were told no borrow money from family if you cant pay the deposit. Luckily we knuckled down and were able to pay the 5% deposit. I know our builder would not order the work drawings without the full 5% Building Sandhurst 36 Porter Davis Currently Fixing Re: Deposit for construction loan - worrying myself sick!!! 14Jul 29, 2009 7:36 pm If you use the advertised PD broker they only require $2.5k deposit, not the full 5%. This is for lifestyle PD, not sure about the others but assume it is the same.. 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 19096 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4821 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 35312 |