Investment

Construction Home Loans

Construction Home Loans

What is a construction home loan?

A construction home loan is available for the sole purpose of constructing a dwelling on a parcel of land as compared to traditional home loans which can be used for a number of purposes.

A construction home loan is structured in a different way during the construction process and then reverts to a standard home loan once construction is complete.

During the construction phase there are generally up to 5 home loan progress payments made and these home loan progress payments are performed at slab stage, frame stage and so on.

There are inspections during the process and this is where the construction home loan provider ensures that the construction progress is running to schedule and is built to the specifications required by council before they provide additional funding from the construction home loan.

There are a variety of construction home loans available to you and we have highlighted some of these construction home loans below for you.  You can also contact us and speak to one of our construction home loan specialists who will assist.

Construction Home Loans – Key Benefits
Standard Variable Construction Home Loans
Fixed Interest Rate Construction Home Loans
Full Doc Construction Home Loans
Lo Doc Construction Home Loans
100% Construction Home Loans
Which Construction Home Loan is for me?
What do I do next to get my Construction Home Loan?

Construction Home Loans – Key Benefits

Choosing to construct a home rather than purchase an existing one is a personal choice and there are a number of construction home loans you can choose from to help you achieve this goal.

Let’s have a look at some of the benefits of choosing a construction home loan to build your own home:

You choose the type of home and the additions you want so it ends up just the way you want it to be

You choose the exact parcel of land you want to build on so the location and aspect of your home is in your hands

You have the satisfaction of knowing that your home is brand new and the no-one else has lived there

You save on stamp duty as you only pay stamp duty on the land component

As you can see there are some personal reasons behind constructing your home by using a construction home loan.

Contact us and see which construction home loan suits your needs best.

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Standard Variable Construction Home Loans

Home loans which are defined as standard variable construction home loans simply have a home loan interest rate which can fluctuate depending on market conditions.

During the construction phase, standard variable construction home loans can have a loading applied to the home loan interest rate.

Generally this interest rate loading is around the 0.25% mark and once construction is complete the home loan interest rate reverts to the standard variable rate.

Why not contact us to find out what home loan interest rates are available for standard variable construction home loans.

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Fixed Interest Rate Construction Home Loans

When it comes to fixed interest rate construction home loans there are a number of construction home loans and home loan interest rates available.

The fixed home loan interest rate will take effect from the time that construction is complete so during the construction phase the standard variable home loan interest rate applies including the home loan interest rate loading as mentioned in the standard variable home loans section above.

Simply contact us to find out about the fixed home loan interest rates available for construction home loans.

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Full Doc Construction Home Loans

Construction home loans are offered to a variety of applicants and the most common type of construction home loan is a full doc construction home loan.

This simply means that the applicant is able to provide evidence of income by way of pay slips, tax returns and or tax assessment notices.

Full doc construction home loans tend to provide a more competitive home loan interest rate as the construction home loan provider is able to verify income, in addition to this the home loan lending limits can also be greater and there is more flexibility in the location of where you want to construct.

Contact us and chat to one of our construction home loan consultants who will be happy to assist.

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Lo Doc Construction Home Loans

The construction home loan which is called a lo doc construction home loan is a home loan which does not require you to provide evidence of income by traditional means.

Instead the lo doc construction home loan provider requires an income declaration signed where you state your income.

This declaration on a lo doc construction home loan is used by the construction home loan provider to assess your ability to repay the proposed home loan.

Lo doc construction home loans are designed for use by self employed applicants who may be unable to produce proof of income at the time of applying for the construction home loan.

To find out more about your lo doc construction home loan options simply contact us and one of our construction home loan consultants will assist.

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100% Construction Home Loans

Due to the popularity of constructing a home there is a construction home loan provider who is able to offer a 100% No deposit construction home loan.

What this means is that the price of the land and the construction cost can by fully funded within the construction home loan so your out of pocket expenses are minimised.

The 100% construction home loan is only available to full doc applicants and has been very popular with first home owners wanting to construct a home.

So if you have limited savings and want to build your own home the 100% construction home loan is the way to go.

With competitive home loan interest rates and a choice of fixed or variable home loan repayments the 100% construction home loan is a great choice.

To find out more about the 100% construction home loan just contact us and one of our home loan consultants will assist.

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Which Construction Home Loan is for me?

As you can see there are a number of construction home loans available, more so there are differing construction home loans to suit your individual circumstances and whether you’re self-employed, don’t have a deposit or a first home owner there is a construction home loan which is sure to suit your needs.

If you’re interested in building your own home then contact us and one of our construction home loan consultants will highlight your construction home loan options based on your needs.

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What do I do next to get my Construction Home Loan?

The next step in obtaining a construction home loan is to contact us and speak to a construction home loans consultant who will listen and understand your needs and work with you to get you the most suitable construction home loan for your needs.

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