No industry jargon and the know-how to navigate through the minefield of new build and construction lending.
Then there’s the rules and regulations that differ from standard residential lending.
But with a shortage of ready-built housing around New Zealand, sometimes the only way to find your first home, forever home, or even to obtain an investment property is to build a new property.
New builds can be complex and not all construction loans are the same. You’ll hear terms like turn-key, fixed-price and labour-only – when all you want to do is get the tick from the bank and build your new home.
Let Lendal Mortgages take the stress away - I’ll take care of your mortgage finance for you. Together, we’ll work through the different construction requirements and present your application, with confidence, to the bank or other lender.
There’s a lot to think about. You’ll want to understand the requirements of paying for the land before building commences, the loan to value ratios (LVR) on construction loans, know what your interest payments will be as your build progresses and work through the various conditions needed to satisfy your construction loan. Phrases like schedule of payments, valuations, builders risk insurance, code of completion and code of compliance can become overwhelming.
Lendal Mortgages will support you throughout the process. I’m here to do the heavy lifting and leg work for you so you can focus on the more exciting aspects of your upcoming new build.
Think of it as build now, pay when complete.
Land & build turn-key construction contracts are an attractive option for buyers as they’re, often, easier to fund. The loan isn’t established until your new build is complete and Code of Compliance is issued – meaning there’s no interest to be paid throughout the land purchase and construction stages.
In turn this means there’s no interest included in the lending assessment and less income is required to service the loan.
With no fixed price, labour only contracts are more complex.
Your lender looks at the amount needed to fund the build by collating various quotes together and factoring in the higher likelihood of build cost overruns. Generally, the equity required in terms of loan to value ratios (LVR) is much higher, to mitigate the risk for your bank or other lender.
LVR’s vary from 60% for labour-only contracts through to 90% for owner occupied fixed price contracts. Lendal Mortgages works through all the complexities with you (jargon-free) so there’s no surprises when it's time to build your new home.
Tricks, tips and general info is good. But tailored advice is better.
Lendal Mortgages – Your Wellington Mortgage Broker.
Contact: firstname.lastname@example.org / 0274134097
Location: 2 Broderick Road, Johnsonville
Join Lendal Mortgages on Social Media for the latest news, tips and insider information on all things lending.
Website design and build by Designerbloom Graphic Design. Copyright © 2022 Lendal Mortgages