Hi,
I have my first payment due (SLAB), I was told last night by a mate that i dont pay any of the Construction Loan until the house is complete.
I thought as soon as the first payment has been paid to the builder by the bank i would have to start paying the loan straight away.
Any thoughts ? which is correct ?
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Browse Forums Home Finance Re: Construction Loan payment question 2Oct 09, 2009 10:10 am hiya, generally you pay an interest only loan. your repayments will be however much each draw down adds up to....you start paying interest straight away on this amount....by the end of the build (your last draw down) will be the final amount to make your loan complete. regards building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/  22 Dec 2008 39 Sydney Junior Member Re: Construction Loan payment question 3Oct 09, 2009 10:18 am  singlemum2daughtershiya, generally you pay an interest only loan. your repayments will be however much each draw down adds up to....you start paying interest straight away on this amount....by the end of the build (your last draw down) will be the final amount to make your loan complete. regards I don't understand why id pay only interest?? why wouldn't i be paying off the actual house.... if i was just paying interest that money is going down the drain Newbie Re: Construction Loan payment question 4Oct 09, 2009 10:29 am ofcourse it depends who yu go with, but you dont have a full mortgage so to speak, that all becomes relevant on the last draw down. but to be honest this should have been all explained to you when getting finance. if not, its something you should have definately asked  building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/ 31 Aug 2009 10 Junior Member Re: Construction Loan payment question 5Oct 09, 2009 10:37 am Paying interest is always like money down the drain but you will always have to pay it whether your paying off the actual home or not. Hi Not sure where you’re located but I’m in Sydney and all we needed to do was provide an interim occupation certificate (IOC) from the builder and that was enough… 1 347 Thanks for your replies everyone. Yes you are all correct, the bank wants the final contract price. They said if the pre-approval expires before we get the final… 5 944 Rex, you can but be mindful the bank has the final word and the valuers don’t like being challenged. And ultimately the banks won’t use a valuation from a valuer who… 19 7434 |
