Construction loans

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Hi,
Not impossible you could get a bridging loan (don't think nasty things of old days, they are much improved) which would allow you to borrow as much as you needed contingent on the sale of your current home.

THere's a much bigger conversation around if you could borrow that money without the sale of your home, and with your wife off work (talking about kids, living expenses, other liabilities etc) - talk to a broker and they would be happy to give you your options & you don't pay them so why not!

As Bec says, bridging is one option, another might be prospectively renting out you current home to improve serviceability in the banks eyes (and allow you to keep the current property as an investment if you wished).

All will need further investigation.

In regards to your question on a construction loan and how it work with a builder, the difference between the building contract and approved loan amount will need to be paid by you first. So everytime the builder sends an invoice for each completed stage early on, you pay it from your account until its time for the bank to start drawing down.

Cheers,

Tom

Thanks for the answers.