Today we got the good news that we’ve successfully received pre-approval for our home loan from the bank.
After meeting with the Hume Bank on Saturday, it was fantastic to get the confirmation today that pending final engineering, they would indeed lend us the money we’re after. After saving hard, I wasn’t really in doubt this approval would arrive, but still, until it arrives, there’s always a level of uncertainty.
We do hope that when the final plans have been through engineering, that the valuation the bank gives to our build, equate to what we’re paying for them.
Coincidently the Reserve Bank of Australia today dropped interest rates to a new record low, which we’re hoping is passed on by the banks. As the Australian economy slows, most banks are keen to loan to customers in the knowledge they will make it back with interest over 30 years.
We’re able to get 3.8% introductory rate for the first year of the home loan, which will then revert to the standard interest rate at the time (which we hope continues to stay low).
For the duration of the build (Metricon tells us 4-5 months), the repayments would be interest only, which understands that people still need to pay rent as well as repayments.
Initially the loan will be for the land, as we pay the balance of the 5% deposit to Metricon with cash. Each stage of the build will increase the amount we owe and the size of the repayments, all which has been calculated and still well within the range of affordability.
Tomorrow I get paid which will mean that we’ve saved the number we have allocated to post build expenses. This centers around fencing, a bit of landscaping, new furniture etc.