Frequently Asked Questions – December 2020
Here is a sample of Frequently Asked Questions from our current clients…
Question: I still need to save until January to qualify for the loan, will I still get the builder grant?
Answer: Yes, as long as the build contract is dated before end the deadline, and the build commences within six months you will still qualify for the builder grant.
Please refer to these blog posts for more information about the HomeBuilder Grants:
- HomeBuilder Grant Application Deadlines Extended But Amount Reduced
- HomeBuilder Grant Building Commencement Deadlines Extended In SA
- HomeBuilder Grant Ready House And Land Packages
Question: What if I spend too much over Christmas and do not meet my savings target in December?
Answer: This could result in you having to start the three months savings again before being able to lodge a loan application.
Question: I need to pay my land or build deposit, can I use my savings account funds?
Answer: Yes, paying the land and build deposit still counts towards the savings, just clearly label the description on the bank transaction that it is a deposit payment.
Question: How strict are HomeStart on the savings requirement?
Answer: There is no compromise, you need to meet the savings target or HomeStart will ask you to go away and save again for another three months.
Question: Why do they make you save for three months?
Answer: It’s the way for them to check that you can meet the loan repayment, when you have a loan, the repayments are not negotiable, so if you can not commit to save for three months – how can you commit to a loan for 30 years?
Question: I have some extra living expenses this month, what should I do?
Answer: We would suggest keep living expenses to the basics as HomeStart will also look at this, and if they are too high, this can result in the loan being declined.
Karryn Reddick
Home Loan Specialist
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