Hello

Our situation is we have our Tax return, but no savings upto date. we have calculated that by mid November we will have a combined savings of $13.000 ( including tax return)
We have been looking to get a 95% first buyers mortgage to secure a land and home package.
we have been given conflicting advice from morgage brokers at what is required.
we emigrated to Perth in October 09. We have permanent residency. I am a nurse been employed here for 9 Months and 24 years in UK. My OH been employed here 7 months, with different source of employment in UK for 7 Months prior to emigrating.
We need a total of $18000 for 95% home loan deposit to secure our home and land package by end of November. The only way we could do this is but adding the $7000 FHOG.
We have been told no lenders will do this , but the told Suncorp might.
Do we secure our package for $2500 and hope we get a home loan in Jan once my OH has been employed here for 12months as one adviser said we should !!! and hope the licence of the land gets delayed from November to Jan .
(It has already gone from November to probably December)
How likely given our low savings would we get a loan with anyone ???? and my OH employment history !!!!!!!
We have been told with our joint earnings the level of borrowing is no problem.
finance we. The loan amount is approx $380000
Thanyou for any advice given.

Firstly are you permanent residents or are you in Australia on a temporary visa?

Suncorp is often a lender we choose for 95% low deposit loans however they have made it very clear that they are not interested in construction lending. They can still approve construction lending, however if they can find an excuse to decline your loan then there is a good chance they will do so!

If you would like to build then I would recommend that you try to save 5% and apply with another lender. If you would like to buy a property (not construction) then the advice the mortgage brokers have given you so far is accurate. Suncorp's policy for 95% lending would normally require your husband to be in his job for 12 months to qualify.

_________________
Otto Dargan
Mortgage Broker
Ph: 1300 889 743
The Home Loan Experts

Our most popular pages:

• Credit Score Calculator: Do the banks see you as a high risk borrower?
• LMI Calculator: Do you qualify for discounted LMI?
• Genuine Savings: The biggest hurdle for first home buyers.
• Employment letter, Accountant letter & Gift letter templates

Hi

Thanks for reply.

Yes we have permanent residency.

One last question once my OH been employed for 12 months would they then include $7000 FHOG towards a deposit for either/or new build or old build.

Thanks

The $7,000 grant is not considered part of the genuine savings requirement. The 3% or 5% (depending on the lender) needs to be saved and in an account you have. The $7,000 can help to contribute towards the cost of construction however the grant is only paid at the time the first progress payment is made to the builder. Because of this people who have enough money to complete the entire project often have a temporary shortfall of funds when the land settles!

My recommendation is that if you do not have extra funds on standby then do not build. Construction almost always goes over budget and anyone building with just a little in extra funds tends to have a lot of headaches. Buying an existing property is a much better choice in these circumstances.

If you can get a little money from your family or save some more funds then construction is still a viable option.

_________________
Otto Dargan
Mortgage Broker
Ph: 1300 889 743
The Home Loan Experts

Our most popular pages:

• Credit Score Calculator: Do the banks see you as a high risk borrower?
• LMI Calculator: Do you qualify for discounted LMI?
• Genuine Savings: The biggest hurdle for first home buyers.
• Employment letter, Accountant letter & Gift letter templates

While having low deposit, doesn't seem to be effective if you want to construct a house as, it is true that it requires some heavy deposit so that, to overcome with the problem of that extra interest or funds that arise, after construction gets completed.

It will be better to have constructed house that is independent and dont require much funds and in the meanwhile, you can get a house loan for that.