Home Building Loans

Construction Loans

New Home Loan Cairns - Mortgage Broker

Mortgages To Build On

Building a home can be an extremely rewarding experience but it can also be a time-consuming and frustrating task. Dealing with builders, contractors, designers, banks, the list goes on and on, but the most common question people have is “how do you pay for it all?”

Let’s start with the land. The process for buying land is pretty much the same as buying an established home. You get a mortgage however, before you get to this point, it is wise to consult with a builder to make sure that what you have in your head, is suitable for the land you’re interested in purchasing.

The builder will provide a quote which you can then submit with your mortgage application, that way you’ll have pre-approval to cover the approximate costs. It’s at this point, that you can fine-tune details such as the standard of finish you’d like. By knowing how much you can borrow, you’ll have some parameters to work within.

service-home-loan

Need to talk?

If you’re looking to build a new home and are searching for mortgage options, contact us for more information.

When does the bank pay?

At the end of each stage, the builder will require payment before continuing on to the next stage.

The building contract?

Provide builder quotes with the land loan application, this way pre-approval for building is obtained prior to buying the land. 

First homeowner grant?

A Government incentive for first homeowners to build a new home rather than buy an existing property.

The Building Process

Building is typically done in stages. At the end of each stage, the builder will be paid (providing you’ve inspected and approved the work), before moving to the next stage.

During the build, you will need to pay interest on the mortgage. This will start off small but increase as construction progresses. Once the build is complete and you have the keys, the mortgage reverts to a standard home loan with regular repayments.

A process commonly known as ‘Turnkey’ has seen a rise in popularity of late. This is where you choose a standard house design of the builder’s choice, and they will fund the construction of it. Once built, you just make the one payment to the builder, like you would if you were buying an established home. The downside here is your house options are limited but your finance options can be much better.

your-loan-options-lend-first

Contact Lendfirst

To find out more and arrange a consultation with one of our mortgage experts, contact us.

Michael

Dawn

Scroll to Top