Browse Forums Home Finance 1 Jan 08, 2017 7:12 pm We've recently been approved for a construction loan for house and land in WA. I'm trying to figure out the repayments required and just want clarification on how the repayments work on the land portion of the loan? Do we start paying the full repayments on the land from settlement or is incorporated in the draw down for the construction? or is it interest only on the land until the house settles? Is there a calculator that I can use to calculate the repayments due on both the land and house during the construction phase? Freaking out that we've over committed ourselves and can't afford the repayments while renting!! Thanks, Re: Construction Loan with Land Explanation 2Jan 08, 2017 7:30 pm Hi Lucy, Usually it's interest only on both the land and the construction loan, but not impossible for it to have been set up differently so double check with your lender. In terms of a calculator I don't think there's a commercial one, I guess rule of thumb for you will be to work out the balance at any time and then multiply by the percentage interest rate and divide by 12 (months) for a very rough estimate. So for example (Land loan + slab loan) x 4% pa / 12 = that months repayment. Best of luck! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building 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 19108 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 35330 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11933 |