

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

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

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

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

Trent
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