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Thinking of getting the first home builders grant?

We know buying a home as a first home buyer in Perth can be both a confusing and exciting experience, but here at Lendable, we strive to make the first home buyers journey simple.

Getting rewarded for building your first home is a sweet deal. At Lendable, we’re up with the first home owner grant and Keystart loan. We guide you through the process and answer all your questions. Your finance journey starts here!

 

Your Finance Journey

It starts with you first. We chat and discuss your budget. We get the right information. We find the right bank for your loan and get pre-approval. It’s not until we land on a budget you’re comfortable with that we introduce you to the builder of your choice – we know quite a few!

Construction Finance Timeline

Finance basics

Your finance journey starts with ticking off all the basics. You’ll complete a simple form, sign a credit rating check, verify your identity and show us a recent payslip. We also discuss your eligibility for a first home builders grant and confirm your borrowing capacity. We then give you a Letter of Eligibility.

Offer and acceptance

Once finance has been confirmed, you can now put an offer on a block of land and sign your Offer of Acceptance (O&A). You’ll sign contracts with a land agent (subject to finance) and an agreement with your builder. You’ll pay deposits for both, contributing to your purchase.

We talk finance

Now it’s time to sit down with your Lendable broker. You’ll be asked to bring supporting documentation. We’ll run through the proposed agreement, first homeowner grant and explain the figures to you. You’ll sign paperwork to get your application for pre-approval underway.

We do pre-approval

Pre-approval is kind of like the “maybe” before the official “yes”. It isn’t a confirmation of finance but the bank’s way of saying they’re willing to lend you money based on their conditions. We help you meet these conditions.

Bank Valuation

One of the bank’s conditions is to value the property. They’ll request a copy of the O&A, signed builder contracts and house specs. These may take several weeks to produce. The valuation can take a week to turn around.

You’re approved

Oh, hey! You got approved. Congratulations! You’ll sign mortgage documents and return to the bank. Now the finance application process is complete.

Let’s settle

What’s settlement? It’s essentially the handing over of the deposit. After settlement, you’ll officially own the land and repayments will commence (just the interest). Our settlement agent will guide you through the process.

Building time

You’re officially building a house! Construction happens over approximately 5 stages and a number of months. The builder will invoice you at each stage. You’ll pass these invoices onto the bank or broker so they can make a payment out of your loan funds on your behalf.

The keys are yours

Your bank will ask for a copy of the home insurance policy and if all payments have been made, you now own a new home. Go you!

Finance basics

Your finance journey starts with ticking off all the basics. You’ll complete a simple form, sign a credit rating check, verify your identity and show us a recent payslip. We also discuss your eligibility for a first home builders grant and confirm your borrowing capacity. We then give you a Letter of Eligibility.

Offer and acceptance

Once finance has been confirmed, you can now put an offer on a block of land and sign your Offer of Acceptance (O&A). You’ll sign contracts with a land agent (subject to finance) and an agreement with your builder. You’ll pay deposits for both, contributing to your purchase.

We talk finance

Now it’s time to sit down with your Lendable broker. You’ll be asked to bring supporting documentation. We’ll run through the proposed agreement, first homeowner grant and explain the figures to you. You’ll sign paperwork to get your application for pre-approval underway.

We do pre-approval

Pre-approval is kind of like the “maybe” before the official “yes”. It isn’t a confirmation of finance but the bank’s way of saying they’re willing to lend you money based on their conditions. We help you meet these conditions.

Bank Valuation

One of the bank’s conditions is to value the property. They’ll request a copy of the O&A, signed builder contracts and house specs. These may take several weeks to produce. The valuation can take a week to turn around.

You’re approved

Oh, hey! You got approved. Congratulations! You’ll sign mortgage documents and return to the bank. Now the finance application process is complete.

Let’s settle

What’s settlement? It’s essentially the handing over of the deposit. After settlement, you’ll officially own the land and repayments will commence (just the interest). Our settlement agent will guide you through the process.

Building time

You’re officially building a house! Construction happens over approximately 5 stages and a number of months. The builder will invoice you at each stage. You’ll pass these invoices onto the bank or broker so they can make a payment out of your loan funds on your behalf.

The keys are yours

Your bank will ask for a copy of the home insurance policy and if all payments have been made, you now own a new home. Go you!

Useful FAQs & Resources:

  • Is my house and land deposit refundable?

    • Yes and No!! Your land deposit will be refundable if you signed the O&A subject to finance. If you are declined your deposit should be refunded. Builder deposits are NOT refundable.

  • I do not start making repayments until my house is completed?

    • INCORRECT!! With a bank you start making Interest payments on the portion of the loan that is drawn down at that point in time. Keystart is an exception where you can choose to pay a minimum of $50 per week during construction.

  • I can make changes to my house after formal approval?

    • Once your loan is formal the bank has agreed to lend you the money based on the assumption that you are building the house they valued. If you change the home you are technically voiding the contract with the bank. However small cosmetic changes are sometimes allowed if you pay for them out of your own pocket. Keystart will not allow any changes after formal approval.

  • My loan is completely approved after it is Pre-approved?

    • NO… Pre-approval is still subject to a number of lender conditions. The main one being the bank valuing the proposed construction. You have not met your finance obligation at Pre-approval stage. On a percentage you are probably 60% there.

  • When should I do my pre-start?

    • If you wish to add this to your mortgage it will need to take place prior to your broker ordering a valuation on your property. Most builders will build a pre-start allowance into the contract in case you are delayed doing this. Be aware a building rep will shave this off if they are trying to get you a lower price on a house.

  • What is LMI (Lenders Mortgage Insurance)?

    • LMI covers the lender in the event of the borrower defaulting on their loan. If the property is subsequently sold and the amount from the sale is insufficient to pay the loan off in full, this insurance will cover the lender for the shortfall. The insurer may then exercise their legal right to recoup this shortfall from the borrower. The lender applies for LMI not the borrower and the insurance should nor be confused with Mortgage Protection Insurance. The fee for LMI is paid as a once only fee at loan settlement and varies depending on the amount of money being borrowed and the Loan to Value Ratio (LVR).

Happy Lendees

Incredibly friendly

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I want to personally thank you for all your help I wouldn’t have managed it without you. From our first meeting you made me feel comfortable working with you and your organization, at all times I felt I could trust you and you had my best interests at heart. Thanks for everything.

Val

Over the moon

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I’m emailing to let you know we received our keys today, and just wanted to say how grateful Monique and I are for all your help/advice you have given us. We can’t even describe how happy we are with the end result

Thomas

Tireless efforts

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We can not thank you enough for your tireless efforts in helping to get this over the line and settled. What you did for us yesterday amazes us and we are so grateful.

Melissa

Borrow sooner. Buy smarter. Build better.

Lendable puts first home buyers in control of the situation. We’ll work with whatever your financial situation is get a better deal from your lender.