Construction Mortgages Overview
There are a number of mortgages which cater for construction purposes and this gives you the choice of building your own home to your own design and unique tastes.
Mortgages like this offer a variety of options and can suit many types of people and circumstances, for example if you are self employed there are low doc construction options or if you have no deposit there are products which can provide 100% of the land and construction cost.
AussieWise Finance Group have access to a multitude of mortgage providers who offer construction products and can assist you with your needs, so why not contact us to find out more about which option may suit you best.
If you'd like to browse through this page we have also detailed much more for you below about the construction mortgages which are available and other relevant information.
Why do people choose to build their own home?
There are many reasons people choose to build their own home rather than purchase an established dwelling and with the variety of construction mortgages out there the options available are many.
Let's take a look at why a person may choose to build their own home:
 |
You can choose your own design and to suit your own taste |
|
Savings on stamp duty as duties only apply to the land component |
|
You can choose where to build your own home |
|
Availability of a no deposit construction mortgage to minimise expense |
|
The satisfaction of knowing that you own a brand new home |
These are some of the reasons people choose to build their own home so if you are interested in knowing more about the construction mortgages available to you simply contact us and have a chat to a consultant who will assist.
No Deposit Construction Mortgages
It has never been easier to construct your own home thanks to this innovative no deposit construction mortgage.
What this product provides is the ability to fund the entire cost of land and construction which leaves you with little out of pocket expenses.
No deposit construction mortgages are very popular with first home buyers who can use the grant to cover other costs and in most cases this leaves you with no out of pocket expenses.
Further, no deposit construction mortgages like this one offer competitive interest rates and a wide range of structures to suit your needs.
There's never been a better time to build your dream home and with the no deposit construction mortgage your dream can become a reality.
Just contact us and speak with one of our consultants who will be more than happy to help.
Construction Mortgages - Standard Variable
A standard variable mortgage simply has a variable interest rate.
This means that the interest rate may vary depending on market conditions, when it comes to these types of products there is generally a loading during the construction phase and the loading is on average 0.25% above the standard variable interest rate.
Once the construction has finished the interest rate reverts to the standard variable rate and continues to be variable for the life of the mortgage.
You can choose to move to a fixed interest rate at anytime so this is also another option for you.
To find out more about standard variable construction mortgages simply contact us and speak to one of our consultants.
Construction Mortgages - Fixed Interest
Fixed interest construction mortgages are quite popular within the market and are a good way to ensure your repayment stability for a certain time period.
During the construction phase the interest rate will be a variable rate, once the construction is complete the interest rate will then become a fixed rate and the nominated fixed interest rate term will commence from that date moving forward.
A fixed interest rate is a good option for those seeking a good interest rate and repayment stability and there are a number of fixed interest construction mortgages to choose from so why not contact us and speak to one of our consultants who will help you determine which fixed rate product suits your needs best.
Construction Mortgages Full Doc
The term full doc construction mortgage means that the applicant is able to provide a full set of financials and this applies whether you are self employed or on a salary.
A full doc mortgage provider will look for items such as pay slips, PAYG summaries and or tax returns to verify your income and this information is then used to determine your ability to repay the proposed debt.
The key benefit of a full doc construction mortgage is that of obtaining competitive interest rates, in addition to this these products are the most common in the market and therefore there is also the broadest choice of options on offer.
To find out about your options just contact us.
Construction Mortgages Low Doc
As compared to a full doc construction mortgage a low doc construction mortgage does not require the applicant to provide evidence of income.
This suits the self employed person looking for a mortgage but who cannot provide income details via traditional means.
A low doc is very similar in structure to a full doc with some key points of difference being:
|
Low doc construction mortgages can extend up to 90% of the price (LVR) |
|
There is a generally a higher interest rate on low doc construction mortgages |
|
There may be lending limits with regard maximum mortgage amounts |
In essence there are very few differences between a full doc and a low doc construction mortgage.
When it comes to the lending institution assessing your ability to repay the proposed debt, they use an income declaration which is what you sign as part of the application process.
To find out more about your low doc options just contact us and speak to one of our consultants who will help you determine which low doc option is best suited to your needs.
Which construction mortgage is the right one for me?
With the amount of products on offer there are so many choices to make and no matter what type of product you need we are able to assist.
Whether you are self-employed, a first home buyer or an investor there is a construction mortgage to suit your needs so why not contact us and let us help you make an informed decision on which option is the best fit for you.
What's my next step to get a construction mortgage?
Your next step is to contact us and have a chat with a consultant who can provide you with a finance summary of the mortgage and associated costs of constructing your home.
Our consultants will also investigate the finance options available to you and present you with a number to choose from.
 |
Other Useful Links within our site: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Useful Sites as a point of reference: |
| | | | | | | |
 |
| 
