The lending barrier
First home buyers have a 10% deposit and want to build on a rural block. Their initial lender does not accept the location and construction proposal.
How we approached it
Check the specific property’s location, size, access and services alongside the lender’s construction LVR limits. Review the building contract, builder requirements, completed valuation and progress-payment process. Confirm any grant eligibility and payment timing before including it in the funding plan.
The outcome
If the land, valuation, builder and financial position are acceptable, a 90% LVR construction facility could support the build. The illustration assumes a nine-month build; actual timing and grant availability vary.
What this means for borrowers
Postcode acceptance alone is insufficient. The security, completed valuation, building contract and cash needed through each stage must work together.
Questions about this case
Can a first home grant be assumed to fund the initial deposit?
No. Eligibility and payment timing must be confirmed for the applicable grant. The funding plan needs to reflect when the money can actually be received.
This is an illustrative scenario comparable to deals we have handled for our clients. Figures and outcomes are examples; lending remains subject to individual assessment.