Hordes of Aussies building their dream home

There’s a house building boom going on right now, partly because of the now-concluded HomeBuilder incentive and partly because interest rates are so low.

Building work started on a record 149,345 new detached houses in the year to September 2021, according to the latest data from the Australian Bureau of Statistics.

If you’re planning to build a new home, please note that financing residential construction projects is more complicated than getting a standard home loan.

Lenders require more paperwork – all the usual documents, plus a copy of your building contract, building plans and building specifications, as well as quotes for any additional work you might be planning.

The way lenders pay out the loan is also more complicated: instead of giving the money in one lump sum, they distribute it as progressive drawdowns, as the build reaches key milestones.

Anthony Landahl | Managing Director Equilibria Finance

This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.

Equilibria Finance is a mortgage broking practice specialising in delivering residential and commercial mortgage and business and asset finance solutions to the clients of financial advice and accounting practices.