Want to build your dream home? Find out how you can get a home loan!
Do you qualify for a home loan as an owner builder? homeloanexperts.com.au/property-types/owner-builder/
Yes, you can get a low doc construction loan if you're self-employed! homeloanexperts.com.au/low-doc-loans/low-doc-construction-loans/
What if you have no deposit? homeloanexperts.com.au/no-deposit-home-loans/no-deposit-construction-loans/
Do you want to build your dream home? We'll walk you through what you need to know about construction loans.
But first meet Phil.
Phil wants to get a mortgage in order to build his own home.
Little does Phil know that he's in for a rough time.
On one side, there's the banking industry. It has lots of regulations and the banks are pretty disorganised.
On the other side, there's the construction industry. Again, there's lots of regulations and nothing seems to go as planned.
Getting the two to work together is tough.
It's important that Phil has realistic expectations that problems are going to happen.
However, if Phil follows some basic rules then he can avoid a few of the headaches.
Firstly, Phil has to put some additional money aside.
Although he's planned carefully he realises that most people go over their budget.
Secondly, Phil should investigate his builder carefully. There's some great builders out there but there's also some that should be avoided.
Phil also inspects his property regularly while it's being built. He knows that defects are common and that if he finds them early then they won't be a problem.
Also, if Phil has friends in the construction industry he should seek their advice. Building a house is complex and expert advice can go a long way!
Phil decides exactly what fixtures and fittings he wants in his home up front, then he doesn't change his mind. If he makes changes to the building contract then the bank may need to reapprove his loan, which can delay his project by up to six weeks!
And lastly, there's going to be a few delays. They can't be helped, so Phil should factor them in.
So what should Phil look for when choosing a lender?
Some lenders aren't interested in financing construction loans -- they're terrible at it! You'll get frustrated trying to get your loan approved and your builder won't be paid on time!
Others are sneaky and charge a higher interest rate.
Most importantly, the mortgage broker handling your loan must understand construction loans and set it up with the right structure.
Thankfully, Phil is using the Home Loan Experts so he won't have this problem.
As mortgage brokers we're here to help you, but we can almost guarantee that the banks are going to stuff something up which we'll then need to fix.
Ultimately, your expectations are the key!
Phil, can you handle it? If you can't handle the delays and complications then don't build.
If you're up for the challenge like Phil, then get in touch and we can help you get the right mortgage to build your new home.