Browse Forums Home Finance Re: Land Loan first and Construction Loan Later (Does it wor 2Mar 15, 2021 9:16 am Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land Loan first and Construction Loan Later (Does it wor 14Nov 16, 2021 2:17 am becjarrettdalton Your broker is the professional in this area - you aren't aware of your mates full circumstances... if your broker is confident affordability is there for the land loan on its own then you should trust her. Ask the question and get reassurance. Perhaps your mates aren't in the same financial circumstances as you - they may owe more money or have less income. I have clients now with land loans (only) and no build approval (yet - pending savings) very much similar to what you describe. Good luck with the purchase Hi Bec! Would love to hear your advice on my case. I have purchased land first and fixed it for 2 years. Now I'm ready to build. Should I consolidate the loan? And if I do, will I get penalised for not completing the fixed duration? Would I be better off having the loan separated for land and construction? Thank you again Re: Land Loan first and Construction Loan Later (Does it wor 15Nov 16, 2021 2:37 am Hello! Without knowing your personal circumstances can only say generally…. It’s no better or worse to bring it into one loan or not Except - you may be able to have it all interest only if you combine it And you may incur a penalty for breaking the fixed period if the rate is different than todays. On the flip side, you’re unlikely to get the same fixed rate again so if you don’t need to break if (don’t need interest only etc) perhaps think of keeping the two separate still. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land Loan first and Construction Loan Later (Does it wor 16Nov 19, 2021 7:10 pm becjarrettdalton Hello! Without knowing your personal circumstances can only say generally…. It’s no better or worse to bring it into one loan or not Except - you may be able to have it all interest only if you combine it And you may incur a penalty for breaking the fixed period if the rate is different than todays. On the flip side, you’re unlikely to get the same fixed rate again so if you don’t need to break if (don’t need interest only etc) perhaps think of keeping the two separate still. Thanks Bec! I would have thought so too, given really low fixed interest rates prior months ago. thanks for the insights 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 13528 Thanks very much! And would the landscaper/contractor generally involve the engineer or is that something the client would do? Thanks for your help 2 6754 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 31784 |