Construction Home Loans
Talk to a Melbourne mortgage broker about how a construction loan can assist you. Construction Loans are designed to help those who wish to design and build their own home, or make major renovations to an existing property. So if you would rather build your own home, instead of buying someone else’s property which doesn’t have the design that you want, take a look at this loan.
The Loan AmountThe 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.
As you are still borrowing a large amount, like any other loan ensure that you carry out some mortgage comparison before choosing. See what rates different lenders are offering and how long the loan will be set up for. A home loan broker can help with the research and negotiation stage of securing a home loan.
Our mortgage brokers will help youWe pride ourselves on our integrity; we're never influenced by lenders' incentives or kickbacks. We will always recommend the best loan products and mortgage lenders available, so you receive a great rate. That's why our customers keep coming back, time and again. Our mortgage services are far reaching and we can help every type of home buyer.
Repaying the loanWith a construction loan you repay interest only while the property is being built. This set length of time will be agreed upon when you take out 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 You only pay interest on the funds which you have withdrawn, rather than the total loan amount, which offers an affordable way to finance the construction of the property.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 grant for people building their own home is a major leg up. To find out if you are eligible you can visit http://www.firsthome.gov.au/
Call and talk to Your Local Melbourne Mortgage Broker to find out if a construction loan would suit you and how to apply for the grant. Call us on
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