Browse Forums Building A New House Re: Questions regarding financing while building...? 3Feb 24, 2009 7:20 pm Basically, you end up with both a mortgage and rent! Real good fun...
Progress payments are made along the way, at the completion of each stage, which means the amount you owe the bank increases over time, and so do your repayments. The bulk of your money (around 90%) will be paid to be builder a few months before you get to move in, which means you'll need to have enough savings/income to be able to meet your mortgage and rental. I guess God didn't use subbies... Re: Questions regarding financing while building...? 5Feb 24, 2009 7:41 pm For our building loan, before the actual completion/handover of the house, our monthly repayment is interest only, i.e. interest on the amount already drawn from the loan.
The drawn amount will get bigger as progress payments are being made, but at least one doesn't need to pay off principal plus interest before the handover date. Re: Questions regarding financing while building...? 6Feb 24, 2009 7:56 pm yeah, my building loan is also interest only, and the bank also turn our existing loan to interest only too, so we are more comfortable to handle 2 loans while building Blog - http://clageonewhouse.blogspot.com/ Building Thread - viewtopic.php?f=31&t=10886&hilit=milan I am in, with my husband and my beautiful bunny Re: Questions regarding financing while building...? 7Feb 24, 2009 10:33 pm yauipop For our building loan, before the actual completion/handover of the house, our monthly repayment is interest only, i.e. interest on the amount already drawn from the loan. Yup, ours is the same...l thought that all construction loans were done this way. I cannot wait til building is completed (heck, l can't wait til it starts! lol) as our home loan repayment will be less than what we are now paying in rent and the interest on the current land loan! Re: Questions regarding financing while building...? 8Feb 25, 2009 7:03 am abbstar11 hmm thats a bit rough! i guess if it gets too much we will have to move in with the inlaws!!! Oh what fun! As others have said, you only pay the interest on the loan once building starts... however I've calculated that towards the end of completion, the interest only payments and my rent will be about $1k a month more than what my mortgage repayments will be I will be eager for a quick finish! 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Hello everyone Please advice me how can I install mesh security window or we cab say mesh flyscreen inside while the pvc plantation shutters are already installed? Is… 0 11605 i would not be signing anything on the day read your contract about when builder submits final invoice generally, have to meet builder within 7 days of receiving final… 1 4735 Hi All, Recently we have signed a contract with Burbank and we are not aware that they have just DORSET, SURREY, HAMPSHIRE, KENT, PILBARA and REDGUM bricks from PGH are… 0 3152 |