Whether you purchase a house and land package or contract someone to build only the house for you, you will need a construction loan. Construction loans vary depending to standard loans in the way payments are made. Depending on your choice of how the house will be built you may be required to make progress payments or you may not pay the complete amount until construction is complete.
 

This type of home construction has you selecting both the house and the land from one developer. The developer builds on their land according to your design choice usually requiring a 5 to 10% deposit prior to building commencement with the residual being paid upon completion.

You may already own some land or perhaps you don’t want to live where house and land packages are currently being offered. In this instance you choose the land and the house design separately. Throughout the course of construction progress payments are required (drawing down on the loan). Payments are usually required on completion of certain stages such as after the framework is erected, brickwork is finished and at lock-up. There can be up to 5 progress payments during construction, all of which is pre-set in a payment schedule and Violet automatically processes these payments as per the builder’s payment requirements.

Do your homework on the developer. Research the business background, how long they have been operating, how big or small they are, how many properties they have built and research online for articles concerning them, whether good or bad. Visit some building sites to see workmanship, visit houses built some years back to see the longevity of workmanship and get references from previous customers.

Almost all developers have display homes – check them out. Wander through homes from different builders and different styles from the same builder. Look at the plans and consider the functionality of the home for your requirements. Some developers allow you to alter the plans and materials to suit your needs but this usually bumps up the total cost.

When you find something you like, read the contract thoroughly. Check details such as the materials to be used and the finishes and if like what was on display cross check it is what it is in the contract.

The land can be as important as the house design you have chosen. You need to be happy with where your house is going to be built and if the design suits the block. When selecting a house design, consider the size of the house on the size of the land – backyard is important to some, not so to others! Discuss your options with the developer first.

Click here to have a Relationship Manager call you to discuss your options or click here to apply online.