Hi all
We currently live in our house with a $145000 mortgage and are wishing to upgrade by purchasing land and building a house (total cost $550000). We dont really like the idea of selling right now as our current mortgage is cheap (less than $300 a week) and renting in our area would be so much more, so ideally would like to stay here until our new house is ready to move into. So Ive been investigating the relocation loan from St George. I havent been able to find much information from other banks online who offer somethign similar.
From what I understand with st george, I would borrow the $145k+550k which would start acruing interest but I would only make payments on the end loan ($380k) (the part remaining once my old house sells) Sounds like a good deal to me.
Has anyone had these types of loans? Would you recommend them? Can I use the equity in my current home as a deposit for the next? Obviously once our house is sold we are going to have $150k profit which will reduce the cost of the new one.