Construction Loans for your new build.
Renovating or building your new home.
If you’re considering about building your own house from the ground up, it’s a good idea to look into your financing possibilities before signing a building contract.
Force Financial Solutions offer loan options for purchasing land, constructing new homes, purchasing off-the-plan homes, and purchasing house and land packages.
Obtaining financing to build a home differs from purchasing an existing home in that the land and structure must frequently be purchased separately.
Construction loans are a type of financing specifically designed for funding the construction of a new build or renovation of a property.
Construction loans are often secured by the property being constructed or renovated. The property serves as collateral, giving the lender assurance that they can recover their investment if the borrower defaults.
Ready to take the next step?
At Force Financial Solutions we will assist you with searching for the best products, whether it be a mortgage, personal loan or debt consolidation.
What steps do you need to consider?
To begin, your lender will most likely handle your initial loan as two separate but concurrent applications: one for the land acquisition and the second for the completed house and land cost.
The second application will cancel the original loan, leaving you with only one loan.
It’s worth noting that construction loans typically require a detailed construction plan, including blueprints, cost estimates, and a timeline. The lender may also require a down payment or equity contribution from the borrower.
Most lenders will also need you to start building on your land within two years after settlement – this does not imply you must finish the home within two years, merely that you must begin building within two years of settling on your land.
Ready to take the next step?
At Force Financial Solutions we will assist you with searching for the best products, whether it be a mortgage, personal loan or debt consolidation.
In most cases, your home will be built in phases, with payments expected at the conclusion of each stage.
Because the bank or lender only charges you for the amount of money you have drawn down, your minimum repayment will vary based on the stage of your home.
Once the construction is complete, the construction loan is typically converted into a traditional mortgage or a long-term financing option. This transition is known as the “conversion phase.”
While the majority of construction loans have variable interest rates, there are those that are fixed rate loans. If you utilise a fixed-rate construction loan, you may end up with one interest rate on your land loan and another on your construction loan.
Lenders Accessed
How much can you borrow?
Want to crunch some numbers before you go any further? Use our online calculators to find out what you can afford or save in regards to your finances.
