Browse Forums Building A New House Re: Building and the Mortgage 2May 27, 2010 11:17 am Hi Riss, I'm assuming you are a construction loan? The bank pays my builder on 5 progress payments so not in one hit. I don't actually pay for the loan until after my first progress payment which is after the completion of the slab. And I only need to pay for the interest accrued for the amount that has been withdrawn to pay the builder. Once the build is complete and all progress payments paid, I will convert this loan into a normal home loan where I'd be paying I+P together with the bells and whistles that come with a standard home loan. Hope that's what you are looking for cheers Re: Building and the Mortgage 4Jun 22, 2010 10:40 am It depends on who you're getting you mortgage through. Most mortgages, as the above person said, you have to pay the interest component of the loan once the first progress payment is made. Our mortgage is different, they don't make us pay anything until we move in (but they will be hitting us with interest on the loan), but we do have the option (which we will take), to pay the interest component. Contact the people you are getting your mortgage through, and clarify it with them. contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: Building and the Mortgage 5Jun 22, 2010 11:03 am carlswil is correct. Normally you settle on land first. This will be your residential land loan. Until you start construction this will be a normal principal + interest affair. Once construction is underway a principal only construction loan is created and you land loan paid out. Here you only pay interest on the balance each month (which will get progressively larger as build matures). Once construction is complete another normal home loan is created and the construction loan is paid out. From then on you pay as per a normal house loan (principal + interest). Hope this adds to the help. You should be able to encase the sewer but you will need it designed and approved and access to lot 580 to do the work 2 17168 I want to build a decking to the drawn shape outlined in black. The problem is how close can I build to the gas hot water unit? Will I be able to build around it and be… 0 20237 custom probably not. Volume, most defiantly, but spec would vary. If youre doing a knock down, there additional costs associated with that that will eat into your budget… 1 10283 |