NEW HOME BUILDERS

HOME LOANS

COMMERCIAL LENDING

INVESTOR LOANS

ASSET & VEHICLE FINANCE

Link Advance works directly for you in the home loan process. We help with new purchases for first home buyers, owner occupied loans, investment loans, refinancing existing properties, commercial finance, business lending, asset finance, and vehicle finance.

NEW HOME BUILDERS

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For many people, the ultimate in home ownership is to design and build your own home. It's easy to fantasise about all the features you'd want in your dream house and ignore all the actual things that go into constructing your own home.

For starters, buying a plot of land and building on it is a very different process to buying an established property. It's a more involved process, and rather than settlement occurring once, it happens over a series of several stages, as the lender controls the funds being paid to your builder.

You need to be able to afford your loan repayments while your house is being built. Often, people don't account for the fact that they're going to be continuing to pay rent while their property is being constructed. Even if you happen to still be living with your parents and not paying rent, lenders will add a "nominal rent", to ensure that in the event of you moving out of home while construction is taking place, that you can still afford your repayments.

To get approval for a construction loan, you need all the same things you'd need for a regular loan with a few additions. For starters, most lenders want a fixed price building contract, so that the cost of the build doesn't get out of hand and to avoid the build being left unfinished. You also need a valuation completed prior to your loan being approved, and the more information you can give your valuer (like building plans), the better.

The other main difference with a construction loan is that during the construction period, it is interest only. For most owner-occupiers, the loan changes to principle and interest once the final progress payment has been completed.

If you'd like to check your eligibility or affordability of a construction loan, contact us now.

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