Browse Forums Building A New House Re: Land loan & construction loan 18Apr 26, 2017 2:38 pm Hello, Similar experience to those above. We were never expecting to build but found a good block in Albury for 146k. Didn't want to rush the build process so we got a land loan through a broker (ANZ 4.03%). We put down a 10% deposit but ANZ and NAB asked for 5%, perhaps considering our savings history and no other debt. When construction starts next month or so our construction and land loan will combine, still at 4.03% and we will pay interest only till completion. To complete the build ANZ has asked for another 5% of the build price, however we will put down about 12%. Hope that helps happy to answer other questions. Re: Land loan & construction loan 19Apr 26, 2017 2:53 pm In our case we put all we wanted to contribute into the land loan to keep it as small as possible and avoid LMI. Then when it came time for the construction loan we used the equity in the land as the deposit. Anything we saved in the meantime we held on to for post handover things. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20093 Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 746 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5652 |