+ Reply to Thread
Results 1 to 8 of 8
  1. #1
    Join Date
    Nov 2011
    Posts
    403
    Thanks
    105
    Thanked
    167
    Reviews
    0

    Default Home loan and building

    does anyone know if the bank takes into account how much the house will be worth once it's built when doing the loan application?

  2. #2
    Join Date
    Jul 2011
    Posts
    1,206
    Thanks
    406
    Thanked
    323
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Yep! They definitely will

  3. #3
    Join Date
    Nov 2011
    Posts
    403
    Thanks
    105
    Thanked
    167
    Reviews
    0
    I hope so as then we shouldn't need to worry about lmi

  4. #4
    Join Date
    Sep 2009
    Posts
    3,487
    Thanks
    449
    Thanked
    1,571
    Reviews
    12
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Yes, it will be based on recent sales for a comparative house in the same area.

  5. #5
    Join Date
    Jan 2012
    Posts
    1,083
    Thanks
    123
    Thanked
    402
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Yes - you will just need to submit full building plans and the builders contract.

  6. #6
    Join Date
    Mar 2011
    Posts
    1,968
    Thanks
    886
    Thanked
    777
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    When you're doing the loan application, also think about any "extras" you're going to include in your new home. It's particularly useful if you can include as much as possible in your building contract, and do your pre-start meeting before submitting all documentation to the bank.

    We had air con and floor coverings done outside of the building contract (to save on the builders margin) and our bank was happy to include the cost of these in the home loan because we had written quotes. You can also look at including things like window coverings, fencing and landscaping if those aren't covered with your builder or land developer - just get written quotes to give to the bank.

  7. #7
    Join Date
    Jul 2010
    Posts
    988
    Thanks
    440
    Thanked
    271
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    We are just going through this process at the moment. The bank took into consideration the price the house will be worth after it's built, but they won't value it over the contract price for land + build, so you're up for LMI if you haven't got 20% deposit in cash or other assets. Or depending on the industry you work in, you can get LMI waived with 10% deposit. We were able to do this and have LMI waived with 10% deposit cash so didn't have to get valuation on our current house which we will sell (loans with diff banks).

  8. #8
    Join Date
    Nov 2011
    Posts
    403
    Thanks
    105
    Thanked
    167
    Reviews
    0
    Well we have been told that all they do to calculate it was how much u bought the block for.... And the quote for the house to be built..

    That sucks.


 

Similar Threads

  1. home loan/ refinancing question
    By Mummy12 in forum Family Finances
    Replies: 11
    Last Post: 16-09-2013, 22:10
  2. Fixing a home loan.
    By LoveLivesHere in forum General Chat
    Replies: 0
    Last Post: 05-09-2013, 10:11
  3. home loan with casual job
    By Mummy12 in forum Family Finances
    Replies: 6
    Last Post: 25-03-2013, 08:48

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Tambo Teddies
Visit our online store and select your individually handmade natural sheepskin teddy bear. Our soft and loveable bears come in a range of styles and colours. Created in Outback Queensland each bear is unique individual. 100% Australian made!
sales & new stuffsee all
Pea Pods
Buy 2 Award Winning Pea Pods Reusable One Size Nappies for only $38 (in your choice of colours) and receive a FREE roll of Bamboo Liners. Don't miss out, we don't usually have discounts on the nappies, so grab this special offer!
Special Offer! Save $12
featured supporter
Billington Street
For stationery as unique as you are! ♥ Handmade, custom designed stationery for all of life's celebrations
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!