Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
A construction loan allows you to borrow against the construction progress of a new building based on the estimated completed value of the property.
Vacant land and construction – You purchase a block of land and independently obtain a Building contract. You decide on all building specifications and materials.
House and land package – You purchase land and home in a combined package from a Developer. You will be able to negotiate building specifications and materials within a range offered from the developer.
Off the Plan purchase – You purchase a pre-planned property, which has yet to be built.
You can customise the property to your personal needs and tastes. You can design your own floor plans, colour schemes, building style, materials and fixtures and fittings. New materials and equipment with warranties can make for better efficiency and lower maintenance costs.
Finding prime vacant land on which to build a new home is difficult. Land close to major city centres will be harder to find and relatively expensive, so travel convenience (if you commute to the CBD) will need to be considered. Because everything to do with a new house is customised, you will have to spend a lot of time and effort on both important and minor factors.
Things to consider
✓Lenders will require that there be a Fixed Price Building Contract by a Registered Builder. Prior to unconditional loan approval you may also have to provide:
- Approved building plans (including Council stamped approval and Elevations)
- Building contract
- Building specifications
- Schedule of inclusions
- Plan of subdivision
- Builders Insurance policy
- Quotes for extras, such as driveways, landscaping, carpets etc