Verbal Approval for Land Loan

Excellent news, our finance broker got verbal approval today of the loan for the land. That's one step almost complete that will give us a big sigh of relief. They need the contract for sale first page and some other stuff but they're pretty happy with giving us the loan. Now we wait.

We're struggling at the moment to get her the cover page as Nancy from Jordan Springs went on a conference for a few days. Seems like no-one else can help so we play the waiting game. Oh well, no need to worry, just delays us paying that 5% deposit. Our solicitor is chasing it also and not having any luck.

How to do the Splits?

Seeing we have to borrow money for something that doesn't yet exist; it makes it hard to organise finance. This is the plan....big thanks to our broker from Advanced Finance Solutions.

• Borrow 95% of the land, pay the 5% deposit. For the time being, make it interest only.
• Gain pre-approval for a figure for the construction. Land does't settle till June next year. Have this ready to go, this would be P and I.
• Change current mortgage to interest only, no need to keep paying principle off that.
• Later consolidate land and construction possibly. (Need to work that out later).