Having an own building is dream of everyone. But not every person is able to construct a building. But with help of Building & Construction Loan, you can fulfill your dream. Building a home will require some type of financing. In most cases, this financing is referred to as a construction loan. |
If you have your own land that you are planning to build a home on then the lender will consider that as equity when applying for your construction loan. If you live in Australia, & you are looking to build your dream home particularly with the continued financial assistance provided by the government with the First Home Owners Grant (FHOG) scheme, it is the best time to do it.
Construction loan is a type of short term loan, but can help you to construct your new dream home. The loan providers will secure a mortgage over the real estate property you are financing and they will make periodic payments to your builder at periodic intervals as the work progresses. The mortgage broker will fund the loan amount required by you to cover the cost of purchasing a vacant land and for the building construction costs.
As the construction work reaches at complete state, the financial lender shifts gears and sets up a regular mortgage. With this new home loan, you can now pay off the construction loan and use the remaining towards the market value of the newly constructed property.
The construction loan is the great way to realize the homebuilding dream. Construction loans are great also because they keep your building construction workers happy because they get paid for the services rendered on time. The construction loan is of two types. In construction mortgage, the interest is only calculated against the portion of the loan amount that has been drawn down. This loan amount must be completed within 12 months of the first progress drawdown payment.
After completion of your building project, the mortgage will roll over into a standard Principal and Interest home loan. Thus it can be said that construction loans are the best way to fulfill your dream.
YEG Finance is a well company of Australia that deals in mortgage services. If you want to know more about building and construction loan and new home construction loans, please visit http://yegfinance.com.au/.
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