Forums / Getting Technical / Legal & Accounting / My First house and running into strife

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  • Profile photo of ShehanShehan
    Participant
    @shehangenghis
    Join Date: 2017
    Post Count: 27

    Hi – if anyone can help me please I am after some advice.

    I signed to build with a company (I wont use their name) last July (2016) to build my PPR using my FHBG. This company not only builds your home but also helps with finance and everything else involved. Going through their brokers, one of the big 4 banks pre approved my mortgage.So the company referred me to a land developer building a new estate around where I wanted to build and I have paid my first half of the deposit to the developer for the land.

    The land hasn’t titled yet and is set to title in June (2017) so the company that is helping me went in for the formal approval. I had paid down my debts, started saving and had also earned a big pay rise so all in all things were looking very good as well as able to save $2000 a month without impact to lifestyle.At the time of the application I was single – June 2016. Since then I have a met wonderful women and happy to say she has been my partner since late last year. Since my savings statements have deposits from my girlfriend as well as we decided to save together, the bank is refusing to approve my mortgage now as I am no longer eligible for first home buyers since my girlfriend had previously used hers years ago.I didn’t know this information until now – I am heartbroken however I understand the law is the law and I respect it.

    We had to go unconditional with the first deposit with the risk of losing that first half of the deposit if formal approval did not come through. I negotiated here and got in writing from the agent at the company that if, for whatever reason the loan doesn’t get approved that the company and the land developer would sell the land on by behalf as its a popular block and give me my deposit back.

    Will they keep their word ? Have I got any legs to stand on here in regards to getting that deposit back but also getting out of this deal without a law suit?

    any help and information will be appreciated :)

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    Hey mate,

    Am a bit unclear on the details. What stops you from not having your girlfriend in this deal so you could get the FHBG?

    Suggest contacting a broker that isn’t connected to that company (to ensure he’s completely on your side…) and examine options as specific advice is needed.

    Same regarding getting out of the deal, if that’s the option you’d choose. Suggest contacting a solicitor for specific advice if the broker option doesn’t yield the result you’re after.

    Hope this helps?

    Cheers,
    Ethan

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    Hi Shehan,
    It always amazed me just how many different options become available to me when I talked with “someone who knows”… and when it comes to property finance, a Mortgage Broker is the way to go.

    Of course, there are brokers and then there are Brokers (some buy a franchise and learn little more than what their franchiser teaches them, mainly selling to “Mums and Dads” so they don’t get to learn the intricacies of one who deals with investors). But pick one of our helpful Brokers on here, and I’d be quietly confident that you will have someone who will be a full bottle on so many aspects of lending that many more options may become available to you.

    Consider opening the batting with Ethan (above – check his signature) who has already put his thoughts there for you to chew over. It could well be that you have options you just don’t know of (yet).

    Benny

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