Building your own house or developing a block of land often requires a special loan that gives you flexibility on progressive draws, repayments and redraws. Although, many lenders offer these features, we will search for one that best matches your scenario or requirements.
The Loan Amount
The loan amount is determined using construction cost estimates, which come from quotes and tenders from builders, as well as council approvals and the amount of work estimated to be carried out by yourself or family and friends. The lender will then approve the loan and you access the funds in stages, as each major part of the construction is finished.
Repaying the Loan
You only pay interest on the funds which you have withdrawn, rather than the total loan amount, which offers an affordable way to finance the construction of the property. Some construction loans will allow you to make small repayments during the construction phase, thereby reducing the principal and interest on the loan.
However, as the rate is variable, your repayments will go up during the construction phase if interest rates rise.
Government grant for building your first home.
If this is your first home, then you can access the first-home owners grant. The first home owners grant of $7,000 is available to eligible first home buyers and is available for people buying an established home or building a brand new home.
The grant is designed to help first home buyers onto the property ladder.
To find out if you are eligible you can visit http://www.firsthome.gov.au/
Call us today or submit your details on line. We can talk you through the whole process of finding a winning loan for your home.