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mortgage advice?

Discussion in 'Real Estate' started by robmillion, 24th Nov, 2009.

  1. robmillion

    robmillion Member

    Joined:
    13th Jun, 2009
    Posts:
    13
    Location:
    Melbourne, Vic
    Hey all,

    I am in the process of mortgage approval with my broker. The dilemma I face is that the property I am purchasing isn't due for completion until August 2010 which means I may have to re-apply for finance as settlement is outside the 6 month period that an approved mortgage lasts. No biggie, except that I'm worried that when I re-apply not only will I have to pay loan application fees again (not a huge issue) but more importantly, how will this affect my FHOG? Is the FHOG valid from the date I signed the contract of sale or from the date of finance approval?

    Also, does anyone know of an Insurance company that offers extended terms on a Deposit Bond? 12 months?

    Thanks in advance.
     
  2. JudgeDreadz

    JudgeDreadz Well-Known Member

    Joined:
    25th Mar, 2009
    Posts:
    109
    Location:
    Sydney
    Hi Rob - to my knowledge, most loan fees (aside from valuation) are payable only on settlement.

    Not sure about the FHOG but I think it is the settlement date as my friend signed before it got increased to 14000 but still got the 14k.

    Ultimately, the Office of State Revenue website is your friend here.
     
  3. robmillion

    robmillion Member

    Joined:
    13th Jun, 2009
    Posts:
    13
    Location:
    Melbourne, Vic
    Thanks for the reply.

    I just called the SRO and confirmed that the grant applies to the date of signing the contract (as long as building commences within 6 months and finishes within 18 months.)

    Not a very pleasant customer service officer however. Maybe she was having a bad day!!!
     
  4. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Rob,
    Most lenders do not charge application fees for a pre-approval if you have not yet identified a property or signed a contract for a property.
    The pre-approvals vary from 30 days to 6 months. It is rare to find one extending longer.
    If you have already identified a property, you should be able to get conditional approval for that purchase that will last longer but is normally subject to valuation on completion, update of financials etc.

    There are lenders with long term deposit bonds up to 48 months.

    The FHOG applies at signing date of contract as you said.

    let me know if you need some help.
    Greg