When you build a house it can be a turn‐key solution where you pay a deposit and then the rest on completion, or it can be a construction loan.
A turn‐key solution is just like any other mortgage – you can put down a 10% deposit and borrow up to 90% with most lenders. The property can settle (and mortgage be drawn) once the code of
compliance is issued.
A construction loan is where you buy the land first and then build on it. The cost of the build is funded through progress payments. With construction loans, most lenders will do up to 80% of the cost to complete (land plus cost to build.) With a large pool of lenders we have the ability to do up to 95% on a construction loan provided:
- It is done through a Master or Certified Builder;
- The 5% deposit is genuine savings;
- The applicants are permanent indefinite residents.
General requirements:
- A fixed-price contract for all aspects of the build process.
- Full specifications.
- A registered valuation based on the plans and specifications.
- Builders’ risk insurance with the interest of lender noted.
