construction loan fhog and deposit

Any general questions you might have in regards to loans and finance.
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deegee
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Joined: Sun May 23, 2010 9:23 pm

construction loan fhog and deposit

Post by deegee »

Hi we have decided to go for a house and land package, we had enough for a 5% deposit on the land alone but now including the house we dont have enough saved. We are eligible for the FHOG can we use this towards our total deposit. also at what stage do we pay the stamp duty costs. thanks for your advice

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Otto Dargan
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Location: Sydney, Australia
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Re: construction loan fhog and deposit

Post by Otto Dargan »

Often it is possible to buy the land and then build at a later date. This may be the best option for you if you don't have 5% genuine savings now. Construction with no genuine savings may be possible with some lenders, it is quite complicated so you would need to call us to discuss in detail and see if the FHOG alone will be enough.

We generally don't recommend that anyone build if they have only a small deposit. Construction almost always goes over budget and it is wise to plan to have some funds as a contingency in the event that this happens to you.

As for stamp duty you would generally pay that at or before settlement of the land. It depends on which state the land it is, so please discuss this with your conveyancer.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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