Getting a loan to buy a home is not the same as getting a loan to build a home. Here's a checklist that makes sure you've got what you need when it comes to choosing the best home loan for your personal circumstances.
Following this checklist puts you one step ahead and should prevent you from feeling intimidated by the process of borrowing money to build. You’ll feel less stressed and more prepared for what’s ahead because you’ll have the insights you need to make the right decisions.
Borrowing to build Checklist
- Research grants and concessions to discover what you are eligible for by visiting https://www.firsthome.gov.au/
- Explore preferred types of lenders (bank, broker or credit union).
- Apply for pre-approval.
- Enquire about building using a construction loan.
- If necessary, talk to family, friends and developers about creative pathways for financing your new home.
- If you don't think you'll have the full 20% deposit take the time to learn about mortgage lenders insurance.
Australian First Home Owners Grants and IncentivesFIRST HOME OWNERS
Research the Australian First Home Owners Grants and Incentives
Learn pros & cons of Lender Mortgage Insurance
Learn about Guarantor Loans
Learn about Parent Assist Loans
I know how to save up to $10,000+ interest while my home is being built.
I know how to access assistance to get into home ownership sooner.
I'm receiving all government grants and incentives I 'm entitled to.
I saved stamp duty by choosing to build rather than buy.
I have a budget that I have to build to.
I've applied for finance with different lenders to get the best deal for my circumstances.
This information is of the nature of general comment only, and does not represent professional advice nor should it be substituted for professional advice. Whilst attempts have been made to ensure the accuracy of the information, we don't guarantee it's accuracy. Any information we provide is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. You should always obtain professional advice before making any decision to purchase property of any kind. We recommend you seek professional financial advice prior to entering into a contract of any kind. Build In Oz disclaims all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this course. Please refer to our privacy and disclosure statement for further information.