Considering Building?


All banks treat construction loans slightly different. It is our job to match the right bank and the right loan with your situation. As we have many banks to choose from, we aren’t limited to selling one product, and we can find the best solution for you.

 

TERMINOLOGY

 

Fixed Price Contract

A builder provides a single fixed price to complete a build deal. The contract is “all inclusive.”

 

A Turn Key Loan

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The property (house and land) is purchased once completed. A contract is generally entered into before building starts and a deposit paid at this stage. The ownership of the title of the property is transferred once the house is built.

Purchasing Land

In the current market, most banks will lend 80% against a piece of land, assuming it is zoned residential and has the services (power, water, sewerage) available.

Build Yourself

If you are a trades(wo)man and are building the home yourself, or you are project managing the build, banks will lend between 50% and 80% of the build costs.

Fixed Price Contract

Banks will lend between 80% and 90% on the cost of the project. A 20% deposit is generally required to purchase the land. Some banks will lend 95% of the completed project, as long as it’s within the 15% of the cost of the project, and the applicant is considered ‘strong.’

Turn Key Deal

Banks will lend up to 90% of the price of a ‘turn key’ project. Note that the banks will require a strong applicant (income, credit history, bank account conduct) to approve a deal at 90%