There is nothing more rewarding than designing and building your own home.
Critical to making that happen though is choosing the right home loan lender, who will lend you all the money you need to settle on your block of land, and when the builder is ready, fully fund the construction of your new home.
Because most people either have a home to sell or rent to pay while their new house is being built, it is critical not to over-stretch yourself financially during the construction phase.
Loans to finance House and Land are often referred to as Construction Loans and typically offer the following features
- Loan is drawn down progressively over time
- ONLY repayments of interest are required until your new home is complete and your loan is fully drawn
- Your loan balance starts low and increases incrementally over time
- The closer your house gets to completion, the higher your interest repayments become
- Interest rate is variable and so may increase or decrease depending on market forces
When your loan is fully drawn and you have moved in, you can then choose to switch to another Home Loan product