Construction Home Loans helps to minimize immediate expenses
Article by Max
There are mortgages specially designed to cater for construction purposes and adopting one of them, you can build your own home to your own design and unique tastes. A construction home loan is available for the solitary purpose of constructing a house on a size of land.
Buying a land instead of buying a built-up home will save you on stamp duty as you only pay stamp duty on the land component. A no deposit construction mortgage helps to minimize immediate expenses, and gives you the satisfaction of knowing that you own a brand new home.
Construction mortgages with fixed interest are quite accepted within the market and are a good way to ensure your repayment stability for a certain time period. While a standard variable mortgage simply has a variable interest rate which will fluctuate depending on market conditions.
With a full doc construction mortgage the applicant is able to provide a full set of financials and this applies specially to the salaried people. A low doc construction mortgage, suitable for self employed borrowers does not require the applicant to provide proof of income.
Your next step to get a construction mortgage is to provide your consultant with your finance situation and budget summary of the costs of constructing your home. During the construction process, there are usually five phases of work stages and progress payments are performed at these stages. This product is structured in such a way that it funds the required sums during different segments of the construction process.
While you decide to build a home you can choose the type of home and the additions you want so it ends up just the way you want it to be. Also, you are in a position to select the exact parcel of land you want to build on, you can perfectly construct a home in your desirable location.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years.http://www.homeloanexperts.com.au