Browse Forums Building A New House Re: deposit required for land and construction loan 2Jun 05, 2013 2:39 pm Really, you can have whatever deposit you want. I know people that have bought/built with 5% deposit, but anything less than a 20% deposit and you have to pay lenders mortgage insurance. Remember as well that when you are building, people are having trouble in newer estates where there isn't any recent sales data that their houses are being undervalued and this will effect how much deposit you will need. Modified Fernside 38 Rawson Homes Blog: http://www.thehousethatmatandjenbuilt.blogspot.com Build Thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=60501 Re: deposit required for land and construction loan 4Jun 12, 2013 2:30 pm If you are looking to borrow $300k, I assume you might have a reasonable deposit to be able to buy a house and land? (Although this might be a little presumptuous based on my knowledge of land prices in Melbourne at least). I would talk to a broker, maybe even one that works in the area where you would like to buy land. Our build: viewtopic.php?f=31&t=64705 Re: deposit required for land and construction loan 5Jun 12, 2013 2:40 pm we have around 15k saved for a deposit. Land is cheap in the area, the block we are interested in is 75k and looking to spend around 210k on the house. we have an appointment with a local finance broker next week. Thanks Re: deposit required for land and construction loan 6Jun 12, 2013 2:47 pm You might be able to do it? Are you first home builders? Are you entitled to any grants??? The way that I look at it, you currently have 5% deposit on the total amount you want to spend. If you are eligible for grants, this will always add to your percent of money down. Remember that you will have other costs in purchasing the block - stamp duty and legals. As you have less than a 20% deposit you will have to pay mortgage lenders insurance. What is your income like? Have a look at some loan calculators and see if you can comfortably pay the mortgage payments. Generally banks will allow you to borrow more than what you are comfortable with, so go in to your broker appointment knowing how much you will be comfortable paying on a weekly basis. Modified Fernside 38 Rawson Homes Blog: http://www.thehousethatmatandjenbuilt.blogspot.com Build Thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=60501 Re: deposit required for land and construction loan 7Jun 12, 2013 2:53 pm Thanks Jen, Yes we are entitled to the first home buyers and first home builders grants here in TAS, 15k total. We are currently paying more with rent and deposit savings than the mortgage repayments would be so we can comfortably make the payments. Re: deposit required for land and construction loan 8Jun 12, 2013 2:58 pm You sound like you are in a good position really mtonkin, I am not surprised you are ready to jump into housing market. I am very jealous at the price of the land! Tassie would be lovely too Our build: viewtopic.php?f=31&t=64705 Re: deposit required for land and construction loan 10Jun 12, 2013 3:12 pm Good luck, it is all very exciting! Our build: viewtopic.php?f=31&t=64705 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 18896 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4813 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 35191 |