Home Loans Home loan Hello, I am planning to buy l
Hello, I am planning to buy land from a developer estate and then get a separate builder to construct the house. My plan is to start building as soon as the land gets titled. I am wondering which loans I can apply for. I am looking for a good rate. Thanks.,    Ke Wan d
Reply | Replied by : Aaron and 8 others

  • Trent


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    Hi Ke Wan. You are looking for a Construction Loan and there are many well featured and competitive loan products on the market that cater to a wide variety of individual needs and circumstances. Your best course of action is to have a broker assess your financial situation to ascertain your borrowing power. Once the broker establishes what you can borrow, they can arrange pre-approval for a loan that best meets your needs so that you can confidently begin the process of securing your desired land and building contract. Should you require guidance through this process, I would be happy to assist you. Regards, Trent

  • Rob


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    Hi Ke Wan - this type of purchase would fall under a construction loan and is usually financed in two steps: buying the land then building the house. The loans can be arranged separately, but are generally bundled together for approval. The purchase of the land occurs as a standard mortgage. Then the building of the house operates as a construction loan where you can draw-down on an agreed amount to pay for each stage. This way you only pay interest on the draw-down component. I'd be happy to assist you, so please feel free to contact me via my online profile. Rob Emmett, Collins Home Loans

  • Simone


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    Hi Ke Wan do you have an idea of when the land will be titling? If it's within the next 3 to 6 months then you could definitely look at applying now otherwise the best solution would be to do a quick assessment of your borrowing capacity and ensure you have or will have sufficient funds for your deposit and costs. This will then give you an idea of what you can spend on the construction. There are certainly many options under 4% at the moment however we need to know more about the loan amount, you deposit and individual needs to be able to give you details on a product. Happy to assist with this and you can contact me through my profile. Simone

  • Girish


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    Hi Ke Wan You have plenty of options to secure the land first at competitive interest rates .once it it titled we could go for construction progress payment loan for the build contract. Contact me through the profile and we can chat

  • Carl


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    Hi Ke Wan, It would be helpful if you had a quote ready to build for your new home, so when you go to purchase the land you will have a clear understanding of how much the (house and land) package is going to cost you. Both land and construction loans are submitted to the bank together for assessment. Depending on how much deposit you have to contribute can have an impact on the interest rate from the banks. It would be advise-able that you have a pre-approval in place before you go to purchase of the land. Im happy to provide more information and let me know if I can help. Cheers Carl

  • LEZLI


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    Hi Ke Wan. I can get your land loan first. Doing similar at present. Depending on your situation- the rates start from 3.63%. Please feel free to contact me via my Profile page. Thank you. Lezli

  • Martin


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    Hi Kewan, A construction loan from a provider who caters specifically to your unique circumstances is the best answer for you. Get in touch and we can explore the options available. Many thanks.

  • Daniel


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    Hello Ke Wan. Most banks have construction loans. The interest rate will depend on the loan amount against the house and land purchase costs. The best rates are with a 20% deposit. You don't have to wait for the land to be titled. Most builders have a fixed price building contracts and will hold the price for a year. You can have one loan over both house and land. Let me know if I can help. Regards. Daniel

  • Aaron


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    Most lenders will do a construction loan for you. Generally we apply for the land loan and construction loan at the same time!

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