Hello Roxy. Welcome to the forums.
historically haven’t been great at construction loans
and it looks like they’ve now completely stopped offering them altogether. However, there are a few lenders on our panel who’re great at this who can help you with a house and land package loan
The first part would be buying the vacant land which is very similar to a standard home loan. You’ll be able to borrow up to 95% of the land value. Generally, 5% to 10% must be paid out to the vendor.
Then you can apply for a construction loan. The loan amount will be based on the lower of the bank’s “on completion valuation” and the cost stipulated in the building contract. Generally speaking, 5% of the total building cost is paid out to the builder up front.
You’ll need to have a signed building contract or tender/ plan specifications and a drawdown schedule. The best part is we’ll roll the land into the construction loan and that means interest-only repayment at principal and interest rate (owner-occupier) during the construction phase. In addition, you’ll only pay interest on the actual amount drawn down.
The key is to apply with the right lender that suits your needs. We have almost 40 lenders to choose from
Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743
or by filling in our free assessment form
to find out if you qualify for a land plus construction loan.