House Building Broker PerthBuilding your own home is exciting and has many rewards, but it can also be a stressful and complicated process. If you need finance to pay for the house building then you will need to look at applying for a construction loan, and talk to your Perth broker.
These loans are designed to help borrowers building a new home or planning major renovations of their existing property. These loans usually come with an interest-only repayment structure while construction is completed. Your Local Perth Mortgage Broker can help you as you look for a construction loan that matches your requirements and goals for the property.
You can draw on the loan in stages as each construction stage is completed, rather than as a lump payment, and you only pay interest on the amount of money you have drawn out, not the whole loan amount. This saves you money during the construction phase. Once the project is completed, the loan reverts to a principal and interest loan.
To determine the final cost of your property you will need to supply construction cost estimates (tenders, costs and quotes from your builder); as well as written details of any work to be carried out by you, your family, friends or subcontractors.
Remember the main points:
- Paying only interest in the beginning allows borrowers to access the funds necessary for the project, without large monthly repayments.
- Usually you can make unlimited repayments during this period.
- However, because this is a variable rate loan. if interest rates go up during construction, so will your repayments.
- Due to paying interest only during this stage, you will not reduce your total debt by much.
First Home Buyer Grant
The boost to the grant is due to end on 31 December 2009. The original first home owners grant of $7,000 is still available to eligible first home buyers after this date. This grant is available for people buying an established home or building a brand new home.
The Federal Government increased the grant in 2008 to boost the property market during tough economic times but is now winding the grant back to the original $7,000. The grant is designed to help first home buyer onto the property ladder.
. If you are an Australian resident and have not previously bought or owned a residential property, you can apply for the one off grant. To find out if you are eligible for this loan visit http://www.firsthome.gov.au/
If you are planning to build your own home, or carry out major renovations to your existing home, you may benefit from talking to a mortgage broker. Call us today on  or submit your details using our on-line form.
|