One of the most enjoyable parts of building your ultimate home is immersing yourself in all those details that make it uniquely yours. What will the kitchen look like? What flooring would work best in the living areas? What views can be maximised?
In the endless daydreaming about features and flairs, fixtures and fittings, it can be quickly forgotten that it pays to provide just as much care and attention to the financing of your new home.
Comparing construction finance options
Because you are planning to build new, instead of purchasing an existing residence, you’ll be required to explore specific types of mortgage products that come under the banner of ‘construction finance’. Many lenders offer these, yet no two products are alike. Fees, charges and rates can vary wildly, so be sure to ask for a ‘key facts’ sheet from each lender that allows you to quickly compare those vital stats.
What about the land itself?
Should you require finance for your block of land as well, this may come under a separate loan. Look out for lenders who bundle all of your finance needs into one package (sometimes called a ‘rollover’), so you can streamline fees and paperwork.
On the other hand, if you own your land outright, it may be worth exploring whether or not you can use the equity in the land as the down payment for your construction finance.
Repayments during construction
As key stages of the construction process are completed, you will need to ‘draw down’ your loan to make progress payments to your builder. Ask your lender if they offer the option of going ‘interest only’ during this phase to help free up your cash flow if necessary.
Successful construction finance: Home builders must be organised!
In order for a lender to approve your finance, they will request a fair amount of documentation such as permits, plans and the building contract itself. Be sure to align yourself with an experienced, organised builder who will be able to help guide you through the finance maze armed with the right paperwork at the right time.
In-house finance (South West): building trust and convenience
Given the unique requirements associated with obtaining construction finance, it’s easy to see the benefits of selecting a homebuilder who is already closely aligned with a trusted finance partner. With your home builder and finance provider already working closely together, the potential for a seamless, well-synchronised finance process is significantly heightened.
Westgate Financial Services – Financial partners of Summit South West.
If you’re planning to build new, it’s reassuring to know that Westgate Financial Services are part of the Summit Homes Group and share the Group’s commitment to quality, integrity and an enjoyable customer experience.
While you relish the process of designing and building your forever home with the experienced team at Summit South West, you’ll also benefit from Westgate Finance proactively coordinating all of your construction finance needs. With vast experience in the Busselton and Bunbury market, they’ll also provide vital advice that could save you a significant amount of money on your finance (home).
For more information about the construction finance benefits of building with Summit South West, contact us today!