One of the key steps in building a new home is securing approval – as thousands of Australians do each month. In June, a total of 13,237 homebuilding approvals were issued throughout the country. About 70% of these approvals were for houses; the rest were for apartments, townhouses and other dwellings.
If you’re planning to build a home, the first thing you should do – before designing your home and submitting your plans for approval – is speak to a broker.That way, you’ll discover how much you’ll be able to borrow and what repayment terms to expect.
Assuming your project goes ahead, you won’t receive your funds in a lump sum. Instead, you’ll receive the money in five tranches, as your project reaches different landmarks. At this stage, your loan will be interest-only, and you’ll be charged interest only on the funds you’ve received so far.
Once the project is completed, your construction loan will revert to a standard home loan and you’ll be charged both principal and interest. As a result, your monthly repayments will increase.
Our team is here to provide expert guidance and tailored solutions that work for you. Reach out today and experience the Finestream Standard, finance, the way it should be.
