Construction Loan Melbourne

If you want to design and build your own home then you may want to look at a construction loan.  Your Local Melbourne Mortgage Broker will help you find the perfect match for your needs.

Construction loans allow borrowers to access funds in stages, as each major phase of the building process is completed.  During the construction stage, interest-only repayments are normally required, meaning that your repayment amount is lower.  This helps to to manage the loan and the constrution and balance it with your life.  A mjor advantage to this loan is that interest is only calculated on the amount you have drawn, not the total loan value. 

Your lender will look at construction quotes and tenders, along with council approvals and estimates of the work to be carried out by yourself or friends and family.  This will be used to calculate the total building costs and the loan amount.

Advantages
You only have to play interest on the money you have drawn out, rather than the total mortgage amount.  Also, you can make unlimited repayments during this time. 

Considerations
As you are only paying interest, you are not paying off the principal of the loan, so you are not reducing your debt by much.  And, as the loan is variable interest rate, if rates go up, so do your mortgage repayments.

Planning to build your own home?  Contact Your Local Melbourne Mortgage Broker to discuss your options and find out which loan will suit your lifestyle and goals.  Call us on to find out how easy it can be to build your dream home.

Don't forget....
First Home Buyer Grant:
The First Home Owners Grant was increased in 2008 but is now due to be reduced as of 31 December 2009.  The original first home owners grant of $7,000 is still available to eligible first home buyers after this date.  So if the home you are building is your first home, you may be able to claim the $7,000 grant.

 To find out if you are eligiable you can visit http://www.firsthome.gov.au/