Know Your Lenders’ Requirements Before You Start

You will need to know your lender’s terms before you start. Both lender and builder must agree on how and when payments will be made – providing stress- free transactions through NewBuild Plan™.

Most lenders will require you meet minimum completion criteria before advancing the final payment for final possession – they don’t always tell you this before you start.

To ensure your home is finished on budget, NewBuild Plan™ requires that your builder provide a fixed price contract at the outset. Depending on your deposit and budget you may be allowed to include:

  1. Provisional Cost sums – estimated costings included within a fixed price contract.
  2. Owners Care – work you intend to do yourself.

NewBuild Plan™ Lending Criteria – How it Helps

While loan approval is entirely at the discretion of the lender, under the NewBuild Plan™ management system a lender may be more willing to approve your construction loan, as they know the process is being closely monitored.

Through NewBuild Plan™ you may be able to build your home with as little as 5% deposit.

Lending criteria under NewBuild Plan™ is similar to that of an existing house purchase – under the right circumstances a loan may be approved up to 95% of the value of your new home.

You may use NewBuild Plan™ for owner occupied and long-term investment properties. These investments may be cross-collateralised against an existing security with no need for a cash deposit.

image9Once approved, NewBuild Plan™ will inform you of the full conditions of your construction (progress payment) loan in writing. We will also communicate with your builder and mortgage broker (if applicable). As lending criteria differ by geographic location and property type, you should discuss your circumstances with NewBuild Plan™ or your mortgage broker before committing to a land or build contract.

']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })();