New home, new construction loan
Ready to buy your next home? You’ll want lending partners who can help you get a new construction loan so you can buy the home you want.
Options for second-home buyers
You’re unique and so are your finances. It might be best to completely refinance or roll your current mortgage into one. At Lendable, we help you navigate this transition.
Lendable is Western Australia’s first for home finance. And as an independent finance broker, we know the best offers around right now. We’ll show you what’s possible.
Getting a home building loan or home loan shouldn’t stop you from living your life. It’s seriously fast and easy to apply online.
Perth’s best home construction loan lenders are here when you need us with everything you need to know. We do it all before you go to a builder or real estate agent.
Some lenders take more than 2 months to even look at construction loan applications. We’ll let you know what you could borrow in a fraction of that time.
Second home owner FAQs & resources:
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).
What are Genuine Savings?
Where the Loan to Value (LVR) is above 90%, the borrower must provide at least 5% of the purchase price from genuine savings.
Definition of genuine savings
Genuine savings is defined as a demonstrable savings pattern established over a minimum period of 3 months in the name of at least one borrower prior to the loan application.
Genuine savings can be from any of the following sources:
- Accumulated savings (savings account)
- Sale proceeds or shares or managed funds (net any tax due)
- Equity in or from real estate
- After tax bonuses from employer (provided amount is excluded from income for NSR capacity assessment)
- Non preserved superannuation contributions (provided the borrower has access to funds in cash form, and minimum employment conditions are met)
- Additional loan repayments that are redrawable
- Borrowed funds
- The sale of real estate or additional borrowings against real estate, held in the name of at least one borrower for a minimum period of 3 months prior to the loan application being received is acceptable provided:
- The service calculation includes the repayments for the borrowed funds
- The source of the borrowed funds are fully disclosed
- Borrowed equity cannot come from builder or vendor
- Where funds come from a non-repayable gift are being used to complete a purchase, the gift must be from an immediate family member and be held in an account in the name of at least one borrower for a minimum period of 3 months prior to the loan application. Immediate family members are:
- Spouse/De facto partner
- Where funds from an inheritance are being used to complete a purchase, the inheritance must be from an:
- immediate family member and be held in an accountant solicitors trust in the name of at least one borrower, for a minimum of 3 months prior to the loan application
- Immediate family members are:
- Spouse/De facto partner
- Term Investment
- Lump sums (e.g. term deposits) that have been held in an account in the name of at least one borrower for a minimum period of 3 months prior to the loan application.
Not considered genuine savings:
- Government grants/rebates (including FHOG)
- Gifts (not from immediate family members)
- Inheritance (not from immediate family members)
- Advance on wages/commission
- Barter Card or other swap negotiations
- Builder discount/finance or any form of incentive
- Proceeds from gambling
- Proceeds from illegal activities
- Rental discounts
- Vendor Gift/discount/finance/rebate or any other form of incentive
- Advantageous/favorable purchase
- Lender finance of 5% deposit
- Borrowed funds (e.g. personal loan)
Can I afford to buy an investment home?
Team Lendable to provide Content
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.
Over the moon
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
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.
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.