A Community for Brides Planning their Wedding in Australia

 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Building boost grant and general home loan questions

Thu Aug 18, 2011 10:31 pm

Help please :lol:

I haven't had much luck searching google and the home loan part of westpac are only open during the day so I can't call and I'm being impatient :D

We haven't brought a house before so will be able to get the 7k grant and also the 10k one for time being.
I handbooks new house and land packages ranging between 300-330k which repayments will be te same as our rent :D
Question: we don't have a deposit saved, I was wondering if the 17k cn be used towards a deposit? If so thy would be our full deposit required, and maybe a bit extra depending on price. I do expect to have to show savings etc, but am wondering if they allow this?

We would be having the lenders insurance as it will take us forever to save the extra deposit and prices will probably go up by this time so will cancel itself out in a way.

Does anyone also know what up front costs would need to be paid? Like bank feed that don't get added to a loan, valuers? And all the other stuff I don't even know about :D

Any bankers in here that can answer all my silly questions? Lol

We also have some debt but can afford a mortgage of this price 3 times over, I don't know whether they would give us a mortgage with this or not, but figure no harm in asking, if we can, then we are 12 months ahead of if we waited and did it the long way.

Any help/answers will help me so much in trying to get my head around all of this
 
Cimbom
I need a title
I need a title
Posts: 1200
Joined: Sun Jul 30, 2006 7:34 pm

Re: Building boost grant and general home loan questions

Thu Aug 18, 2011 10:56 pm

I'm not 100% sure but I think you would need at least 5% of the property price as a deposit. The total deposit needs to be untouched in your account for three months i believe.

You will also need to pay stamp duty, legal costs, home loan fees, etc. Stamp duty would depend on what state you're in so you need to check the website of your state revenue office to confirm.
 
adl11
I just love to talk
I just love to talk
Posts: 462
Joined: Tue Feb 08, 2011 11:53 am

Re: Building boost grant and general home loan questions

Fri Aug 19, 2011 9:04 am

i'm no banker but i do work in the real estate/buying and selling area in Queensland and i know that NAb are now counting the rent you pay as a form of savings I'm pretty sure, so you may need to see a broker (PM if you want some details for one) and they should be able to help you out. Brokers dont cost anything and at least then you'll know where you are at.

I'm pretty sure the banks wont class the $17k from the government as a deposit and you will have needed to save some deposit otherwise your lenders mortgage insurance will be massie, and that amount gets tacked onto your loan amount, so your repayments would be more than just the $300k - $330k loan.
 
Cimbom
I need a title
I need a title
Posts: 1200
Joined: Sun Jul 30, 2006 7:34 pm

Re: Building boost grant and general home loan questions

Fri Aug 19, 2011 9:16 am

I think the government grants are added to your deposit but are not a deposit on their own. For example, if you purchased a $300k house, you need to pay $15k deposit. The 17k is added to that to make a total deposit of 32k. 100% home loans were more common before the GFC but I believe they are non-existent now.
 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Re: Building boost grant and general home loan questions

Fri Aug 19, 2011 9:26 am

Thanks for the help girls.
I expect to be saving some, would love to not have to but wont happen :lol: I will ring the bank today and see what they say, if they let the 17k be used for deposit, and we manage to save x amount each week over the next few months.
Thats interesting that they may class rent as savings, interesting, will see if Westpac do the same, I doubt it but will see if they do.
Bascially if we are unable to get a house while there is this extra grant, we will just wait until we are in a better position to do so, but would be great if we can do it now - it will stop FH spending money on his bl**dy jetski :lol:
 
User avatar
BubS
I need a title
I need a title
Posts: 1222
Joined: Thu Aug 12, 2010 12:06 pm

Re: Building boost grant and general home loan questions

Fri Aug 19, 2011 9:46 am

How much debt are you talking about?

Also, how do you know you can afford a mortgage 3 times this size? how did you work that out? The bank have indexes they will use to work out what you can afford.
 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Re: Building boost grant and general home loan questions

Fri Aug 19, 2011 10:02 am

We have approx 40k currently with a loan finishing February which will take it down to around the 30k mark.

Based on our income and expenses/debt and the calculators on the net, just a rough estimate, probably not exact when the bank goes to work it out, but based on our real expenses of what we actually spend, we can well and truly afford the mortgage was my point.
 
User avatar
zoltansprincess
Ebay Addict
Ebay Addict
Posts: 3876
Joined: Sat Jan 21, 2006 7:20 pm

Re: Building boost grant and general home loan questions

Sun Aug 21, 2011 9:32 am

The only other thing to keep in mind with house and land packages is that many of the prices don't include all the finishings that usually amount to $50k+ e.g. fly screens, fences, turf, mailbox, window dressings etc
 
User avatar
BubS
I need a title
I need a title
Posts: 1222
Joined: Thu Aug 12, 2010 12:06 pm

Re: Building boost grant and general home loan questions

Sun Aug 21, 2011 9:44 am

You will be able to add the first home grants etc to your deposit, but they will not allow you to use that as your sole deposit. You need to show that you are able to save money and ultimately, be able to pay a mortgage every week/month.

The reason I was asking about the debt/mortgage calculations is because so many people just say they can afford it with no real authority. It's great if you've used the calculators on the bank's websites, they should be very indicative of what you can borrow.

FH and I are in the same boat at the moment, although not entitled to any grants and have a fairly substantial deposit, but we're only borrowing about a third of what we could get. Unbelievable how much they will lend you!!
 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Re: Building boost grant and general home loan questions

Sun Aug 21, 2011 9:48 am

zoltansprincess wrote:
The only other thing to keep in mind with house and land packages is that many of the prices don't include all the finishings that usually amount to $50k+ e.g. fly screens, fences, turf, mailbox, window dressings etc


Yip I know all of this, the majority come with everything right down to the letter box. We will definitely be looking at what is included before buying and seeing f they can add extras :)

I have spoken to westpac and we would need to save 5% deposit regardless, even though on top of the grant only another 1-3k is required as a minimum.

I will be having a look to see if any other lenders are able to offer a loan using the17k in grants as deposit, and then we can save as much as we can but not be at risk of being turned away for being 500 short of our required 5%.

If we can get this sorted, do you all think it is the right time to buy? FH really wants a house but his real estate friend is saying not the right time. And that interest rates were 2-3% lower in 2008 and they could go this way again - I think around 6.5 isn't too bad, and that it's not worth waiting for an interest rate drop that may or may not happen in the next year or two.

The way I see it is we are paying $440 a week on someone elses mortgage, if we get our own at slightly higher interest than what it could drop to in the future we are still better off.

Thoughts?
 
User avatar
BubS
I need a title
I need a title
Posts: 1222
Joined: Thu Aug 12, 2010 12:06 pm

Re: Building boost grant and general home loan questions

Sun Aug 21, 2011 10:41 am

Interest rates are very likely to drop in the coming months/year. Provided you don't lock into a fixed rate loan, which I would strongly advise against at the moment, then you'll be fine. I would borrow the full amount at the variable rate.
 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Re: Building boost grant and general home loan questions

Tue Aug 23, 2011 10:53 am

One of the guys from Aussie Home Loans is coming round tonight.
Does anyone have a list of questions that should be asked?
I am putting a list together today but don't want to miss anything if I can help it :)

Exciting :) I hope so much that we will be able to get away with not saving a deposit.

Having our own house will kick FH's but into gear and get the rest of our debt gone, I have already seen the start of it :lol: "If we can do this, we will sell the second jetski, and the double trailer and some of the parts in the garage, then we will have an extra 5k" and I know he so badly doesn't want to sell the second ski as its an old one that he is kind of restoring as it has become a collectors item its that old :lol:
 
Cimbom
I need a title
I need a title
Posts: 1200
Joined: Sun Jul 30, 2006 7:34 pm

Re: Building boost grant and general home loan questions

Tue Aug 23, 2011 12:45 pm

Unfortunately, I'm pretty sure you'll need a deposit. We spoke with Aussie at the start of this year when we were in the process of saving our deposit and were told we'd need 5% as a minimum (total saved untouched for 3 months) to be eligible for any mortgage. It's still good to talk with them though. I'm sure they'll have a lot of useful info they'd be able to share.
 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Re: Building boost grant and general home loan questions

Tue Aug 23, 2011 12:59 pm

When I phoned the guy, he told me that we can use that 17k as deposit and not need to save the 5% with some lenders, so will see what happens tongiht. Will be mad if he said it when its not true
 
NKDJ
I just love to talk
I just love to talk
Posts: 158
Joined: Mon Sep 21, 2009 8:49 pm

Re: Building boost grant and general home loan questions

Tue Aug 23, 2011 7:44 pm

I work for Westpac and they don't allow the FHOG (First Home Owners Grant) to be used as a deposit. As a minimum you'll need to demonstrate 5% of the purchase price. If you don't have that you can also use your rental payments - that still need to equal 5% of the purchase price. It demonstrates

As for upfront fees for us, there are none. We give you the first valuation for free. If you are constructing you'll have progress inspections. Some of our products are say $300 for all your progress payments or $50 each draw dependant on how many draws you have - your building contract will show this. If you have mortgage insurance you can add to your loan or pay it yourself.

PM me if you have any other Wpac specific questions (FYI I just work there not a trained financial planner or anything).
 
User avatar
strawberry234
I'm a kiwi
I'm a kiwi
Topic Author
Posts: 667
Joined: Mon May 24, 2010 3:48 pm

Re: Building boost grant and general home loan questions

Tue Aug 23, 2011 10:05 pm

Yeah we are with westpac for our bank accounts. Thy were the first ones we called, but not going to go with them at this stage.
Sending off for pre approval using Aussie as a broker, the guy was really helpful tonight and answered a lot of y general questions too.
Now that I have a better understanding and he said we can do it the way I want to (using FHOG and building boost as deposit) I can start investigating further.
If we don't find a house that we want to buy, we will save and keep hunting once we have more cash.
FH is much more on board now than he was a few days ago so that helps as he now realizes that we can do it and don't have to wait a good 12 months.
 
shreyaboni
Newbie
Newbie
Posts: 2
Joined: Sat Nov 19, 2011 8:32 pm

Re: Building boost grant and general home loan questions

Tue Nov 22, 2011 10:02 pm

Can a VA home loan be used for the construction of a new home? We are trying to purchase land to build a home on. Can we use our certificate of eligibility to get a loan for the construction of the home? We are already aware that we cannot use it for the land itself, but I keep seeing differing things about the construction of homes. Can someone clarify this with sources that are recent please?
________________________________
affiliateelite ~ affiliateelite.com ~ adgooroo ~ adgooroo.com
Last edited by shreyaboni on Fri Nov 25, 2011 4:49 pm, edited 1 time in total.
 
Illikaeri
I just love to talk
I just love to talk
Posts: 312
Joined: Wed Oct 07, 2009 4:09 pm

Re: Building boost grant and general home loan questions

Tue Nov 22, 2011 10:25 pm

I'm in the same boat, FH and I want to buy a house as we're eligible for the 10k+7k.

The way it was explained to us initially was that if we found a brand new house, we'd be good to go straight away, if we found a pre-existing house, we'd have to save up extra to cover the 10k that we obviously couldn't get. After further clarification, turns out that's actually not enough. We'd still need about 3% on top of everything to cover LMI and purchase costs. So after we've dragged everyone all around town looking at places and stopped wedding planning for this, we've finally got the full story it seems. Unless there's another way, what a big load of wasted time. I'm so frustrated by it, we've been renting for 3 years, I spend $100+ a week on fuel driving to and from work (I work 60km away from where I live). Ajsbebgkerbgkjwebgkgb is how I feel.

So keep us informed with how you go, maybe there's still hope for me.
 
User avatar
sharmy
I just love to talk
I just love to talk
Posts: 433
Joined: Mon Jul 12, 2010 4:40 pm

Re: Building boost grant and general home loan questions

Wed Jan 11, 2012 3:11 pm

I work in conveyancing in NSW. If you have any questions feel free to PM me. I have been doing it for 10 years and majority of my clients are first home buyers.
 
User avatar
MalinViktoria
Tattooed Wife
Tattooed Wife
Posts: 2912
Joined: Mon May 03, 2010 7:35 pm

Re: Building boost grant and general home loan questions

Mon Mar 26, 2012 3:42 pm

Just bumping this to see how you're going with buying/building your house, strawberry? :D
GZIP: On | Load: 0.44