Search found 7730 matches

by Otto Dargan
Thu Sep 26, 2019 2:45 pm
Forum: Home Loan Forum
Topic: Do I have to get separate loans for land and construction?
Replies: 5
Views: 69973

Re: Do I have to get separate loans for land and construction?

Hi Timothy,

Unlike a standard home loan, construction loans are drawn-down (there is a repayment schedule to make construction progress payments.)

Basically, you are asking your lender to pay your builder for the part of the construction work that is completed. Usually, five payments have to be made at each stage of construction.

Before the lender allows you to begin construction, you and your builder will need to provide them with the following documents:
  • Signed building contract.
  • Council approved plans.
  • Construction certificate (NSW) or Building permit (VIC) or Decision notice (QLD).
  • Builders Insurance (certificate of currency).
  • Builders Indemnity / Public Risk Insurance ($5 million minimum for most lenders).
It is recommended that you send these documents to the lender 2 weeks before construction starts to give them sufficient time for processing your mortgage.

We specialise in construction loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify.

Cheers,
by Otto Dargan
Thu Sep 26, 2019 1:54 pm
Forum: Home Loan Forum
Topic: Do I have to get separate loans for land and construction?
Replies: 5
Views: 69973

Re: Do I have to get separate loans for land and construction?

Hi Timothy,

After you get approved for your construction loan, the bank will assess your financial situation by looking into your recent payslips, savings for the last 3 to 6 months, recent tax return and your deposit size.

Besides looking into your financial situation, you will need to provide the following documents for a construction loan:
  • A building contract that will detail the building stages, drawdown schedule, how long the construction will take and the final price of the build.
  • A building plan that gives the valuer an idea of the nature of the property you're building. The plan does not have to be council approved at this point.
  • Building specifications give the bank an idea of the quality of the materials, appliances and workmanship involved in the build.
Further documentation is required before you make your first payment including drawdown schedule, the builders’ insurance details and final plans to be approved by the local council.

Cheers,
by Otto Dargan
Thu Sep 26, 2019 12:34 pm
Forum: Home Loan Forum
Topic: Do I have to get separate loans for land and construction?
Replies: 5
Views: 69973

Re: Do I have to get separate loans for land and construction?

Hello Timothy.

Thank you for reaching out to us and welcome to the forums.

Since you are looking to buy land and build a house to live in it is advisable to split the loan into a land loan and a construction loan.

By doing so, the loans will be advanced to you during the different stages (when buying land and when building the home) since it is considered as two separate loans.

When purchasing land, you need to meet the following requirements to ensure you’ll be able to access the equity at a later stage:
  • Location: It’s important to choose a location that is either in a major city or town or at least close to one.
  • Services: The land must be connected to the electricity grid and have access to town water or tank water as well as sewerage services.
  • Size: The land must be no larger than 50 hectares – only a few lenders will consider land sizes larger than this.
  • Access: There needs to be easy access to the land via a road. As long as it’s well maintained, dirt roads are usually ok.
With some of our lenders during the construction phase, you pay interest-only on the drawdown amount. Moreover, with one of our lenders, you pay interest-only at P&I rates.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a land equity construction home loan.

Cheers,
by Otto Dargan
Tue Sep 24, 2019 9:06 pm
Forum: Home Loan Forum
Topic: St George - accountant letter not accepted for a home loan
Replies: 5
Views: 66137

Re: St George - accountant letter not accepted for a home loan

Hi Abe,

Yes, it’s true that many experts are forecasting a further cash rate cut, but it is unclear how much of that is expected to be passed on to home loan borrowers. ‘To fix your home loan or not’ is a question we get all the time.

It largely depends on your financial goals and needs. Generally, you shouldn’t fix your loan if you: As we have almost 40 lenders on our panel, we can get you a highly competitive interest rate on your home loan and will also periodically review whether or not you’re getting a competitive rate on your home loan.

Give us a call on 1300 889 743 or fill in our free assessment form to discuss your needs today.

Cheers,
by Otto Dargan
Tue Sep 24, 2019 8:14 pm
Forum: Home Loan Forum
Topic: Buy now or save for a larger deposit?
Replies: 5
Views: 68806

Re: Buy now or save for a larger deposit?

Hi Alica,

When you buy a property, you can expect to spend up to 5% of the contract price on fees, duties and charges. So for a purchase of $700,000, there may be up to $35,000 of costs involved to complete the purchase.

The main government costs associated with buying a home are:
  • Purchase stamp duty, which is a tax levied by your state government on all property purchases.
  • Mortgage stamp duty, though it has been abolished in most states.
  • Transfer fee, which is a fee for registering your name on the title of the property and removing the vendor's name.
  • Registration fees for registering your lender's mortgage title of your property.
  • There are other costs such as conveyancing fees, valuation fees, inspection fees etc.
If you’re a first home buyer, buying a new property or building a home, you may be eligible for additional concessions or grants. Please contact your state government office for confirmation.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Tue Sep 24, 2019 7:36 pm
Forum: Home Loan Forum
Topic: St George - accountant letter not accepted for a home loan
Replies: 5
Views: 66137

Re: St George - accountant letter not accepted for a home loan

Hi Abe,

The current record-low cash rate environment has led to the banks offering home loan interest rates below 3% p.a. Some of our lenders are offering sharp fixed rates for 1, 3 and 5 years.

Cheers,
by Otto Dargan
Tue Sep 24, 2019 7:28 pm
Forum: Home Loan Forum
Topic: Buy now or save for a larger deposit?
Replies: 5
Views: 68806

Re: Buy now or save for a larger deposit?

Hi Alica,

The best way to waive LMI is to save a larger deposit. These deposits can be in the form of your own savings, or even gifted deposit from your parents, inheritance, tax refunds, First Home Owners Grant, etc.

Another way to avoid paying LMI is to have a guarantor on your home loan.

If saving a larger deposit is not an option, then there are ways to reduce LMI:
  • Some mortgage insurance companies offer up to 15% discount on their LMI premium if you're a first home buyer.
  • You can even capitalise the cost of the LMI, which means you add the cost of the LMI onto the principal of the loan. You'd still by paying LMI, but you would not have to pay it upfront.
Cheers,
by Otto Dargan
Tue Sep 24, 2019 6:55 pm
Forum: Home Loan Forum
Topic: Buy now or save for a larger deposit?
Replies: 5
Views: 68806

Re: Buy now or save for a larger deposit?

Hi Alica,

Thank you for reaching out to us and welcome to the forums.

Using the buy now or save more calculator, even with a deposit of $50,000, you would be better off buying now than saving for later. You would be better off by approximately $479,225 if you buy now.

Please note that the calculator is basing the results on the average annual property growth in NSW over the past 25 years.

Since your deposit is quite low, you will have to pay Lenders Mortgage Insurance (LMI) premium of $24,375. To avoid paying LMI, you will need a deposit of at least $140,000 or 20% of the property value. Some of our lenders allow borrowers to add the LMI fees on top of your home loan.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low deposit home loan.

Cheers,
by Otto Dargan
Tue Sep 24, 2019 4:36 pm
Forum: Home Loan Forum
Topic: St George - accountant letter not accepted for a home loan
Replies: 5
Views: 66137

Re: St George - accountant letter not accepted for a home loan

Hello Abe. Welcome to the forums.

That’s St George’s new policy for self-employed borrowers - they no longer accept an accountant’s letter for a company that is not trading.

Their new policy states that:
  • If the company is not trading, a letter stating it’s not trading and has no liabilities is not good enough.
  • If it’s a holding company then you must state this, otherwise, if it’s a company which is just parked there then essentially if you have no returns then it is not going to work out.
You would either need to cancel the ABN (Australian Business Number) or apply with another lender that still accepts an accountant’s letter.
There are a few banks and lenders that can do this who are offering competitive interest rates and that’s who we’re working with.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Mon Sep 23, 2019 10:13 pm
Forum: Home Loan Forum
Topic: Boarding House Loan
Replies: 0
Views: 91225

Re: Boarding House Loan

Hi Liam C, welcome to the forum.

There aren’t a lot of lenders that accept boarding houses as security. We have a couple of lenders on our panel of lenders that can lend against these properties on a case by case basis. And that's who we're working with.

Yes, boarding houses with 6 or more units/ bedrooms will fall under commercial loans. It also means the loan to value ratio will be limited to 60%-70% of the property value. The property must also be located centrally in a major capital city.

Yes, typically lenders will only use 80% of the rental income for serviceability to account for property repairs, taxes and maintenance costs.

Yes, a rental appraisal will be required from a licensed real estate agent. The banks will also have their own valuer do an appraisal as well and use the lower of the two figure.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our online enquiry form to discuss your options.
by Otto Dargan
Mon Sep 23, 2019 8:29 pm
Forum: Home Loan Forum
Topic: How will the bank split the property after a divorce?
Replies: 5
Views: 66850

Re: How will the bank split the property after a divorce?

Hi Cheryl,

It is understandable for a few missed repayment situations to arise in cases of a divorce settlement. It is a common occurrence when going through a divorce or separation because of advice from a lawyer not to make repayments on the mortgage as it is believed that the other partner will get a larger share of the equity.

Most lenders will require at least 6 months of perfect repayment history before they refinance your loan. Some of our specialist lenders might accept a 3-month history, as long as there are no blemishes on your credit file.

It's best to write an explanation letter regarding the missed payments as well.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Mon Sep 23, 2019 8:19 pm
Forum: Home Loan Forum
Topic: How will the bank split the property after a divorce?
Replies: 5
Views: 66850

Re: How will the bank split the property after a divorce?

Hi Cheryl ,

A refinance in this case is the same as applying for a new home loan, so the same bank lending criteria will apply.
Also, you:
  • Must have good repayment history on your existing loan.
  • Must be able to prove you have funds to pay out your partner.
  • Don't need to prove genuine savings.
Lenders will also look into your borrowing power since you’re going from a two-income family to sole income.

If you're planning on residing in the property after the divorce, then you are exempt from Capital Gains Tax.

Cheers,
by Otto Dargan
Mon Sep 23, 2019 8:00 pm
Forum: Home Loan Forum
Topic: How will the bank split the property after a divorce?
Replies: 5
Views: 66850

Re: How will the bank split the property after a divorce?

Hello Cheryl.

Welcome to the forums.

Thank you for reaching out to us and sorry to hear about the divorce.

Firstly, you will need to get legal advice and set up a contract with the agreed price of the property. Once the property is valued, you will need to consider the share your husband will receive.

It is advised that you come to an agreement between yourselves but if you cannot agree on matters between yourselves and need to take it to court, then the following will be taken into consideration:
  • The contributions both of you made before purchasing the property like stamp duty, deposit, etc.
  • The contributions made during ownership like mortgage repayments, and financial contributions made like earnings, savings, etc.
  • Even non-financial contributions like being a homemaker is considered.
  • The person's future earning capacity
  • The age and health of you and your wife
  • If there are any children and who will take care of the children.
  • The length of your relationship.
For full ownership of the property, you will need to buy out your husband’s share of the property. You’ll need to refinance the loan to a new loan that is solely in the name of the person who will retain ownership of the property.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Sep 20, 2019 8:16 pm
Forum: Home Loan Forum
Topic: What is a parent assist home loan? How does it differ from a guarantor home loan?
Replies: 5
Views: 67687

Re: What is a parent assist home loan? How does it differ from a guarantor home loan?

Hi Lucille,

Besides having a sizeable deposit, these are other things you should be aware of as a first home buyer:
  • There are many additional costs involved in purchasing a property like conveyancing costs, transfer fees, registration fees, etc. Therefore, it is best to keep at least 3-5% of the contract price for fees, duties and charges.
  • Check to make sure you're eligible for a first home owners grant (FHOG), which can range from $5,000 to $25,000 depending on the state
  • Make sure all the required home loan documents are updated and in order so that your approval process is quicker.
  • Sort out your debts and credits and pay off any large debts so it does not remain on your credit file for a prolonged time period.

We have helped many first home buyers in difficult situations buy their first home.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a first home buyers’ loan.

Cheers,
by Otto Dargan
Fri Sep 20, 2019 7:55 pm
Forum: Home Loan Forum
Topic: What is a parent assist home loan? How does it differ from a guarantor home loan?
Replies: 5
Views: 67687

Re: What is a parent assist home loan? How does it differ from a guarantor home loan?

Hi Lucille,

A parent assist home loan might be perfect for you as you do not have to show a deposit or genuine savings, as your parents are lending you 20% of the property value.
  • Since you’re borrowing less than 80% of the property value, this means the loan to value ratio is also less than 80%, meaning you don’t have to pay lenders mortgage insurance.
  • Your parents’ property is not used as a security for your mortgage.
  • Your parents’ don’t have to be on the title of the property.
  • Lower interest rates on the parent assist loan will allow you to pay off their mortgage sooner.
  • If eligible, you can even apply for a First Home Owners’ Grant (FHOG).
Cheers,