Finance Options with Murray
Homes?
Purchasing an existing
home is easy and everyone knows what to do. But what about
building a new home. How much and when do I have to
make payments, will my bank
lend me the money or do I need to consider other
options.
Lets answer a few of these
questions.
Firstly, it is normal practice for a
new home client to first secure and settle (pay for) a section. It
is also normal to make progress payments to your builder some payment profiles are
very aggressive and result in customers paying for more than the work
completed on site at early stages of the project Your masterbuild guarantee
only covers you to the value of work completed so. At Murray Homes
we prefer a more gentle approach as follows:
Deposit: 5% of the contract
payable on confirmation to our solicitors trust account and
released at the same time as your floor progress payment.
Completion of floor: 10% at
completion of foundation and concrete floor.
Ready for roof: 15% when the metal
fascia is on.
Lock up: 30% when the
exterior cladding is complete and garage door on.
Final fit off: 25% when the
joinery is installed and the painter is working
Completion: 15% on full
completion and possession with code compliance certificate provided
in most cases
So how does a purchaser fund all of this?
Most banks will provide a mortgage to purchase a section as long as you
have a large enough deposit or sufficient equity in your own home and
sufficient income to service the loan. One of our consultants can
make a rough assessment for you or if you prefer we can introduce you to
our preferred mortgage broker First Place Mortgages Limited.
Progress payments are funded by separate advances supported by
valuation at the time the progress request is made by your builder.
If the bank says no what do I do?
Some non bank lenders offer more flexible finance products for building
clients. Again this will be subject to their lending criteria but some
products offer the ability to build with as low as 5% deposit on a home
and land combination and progress payments funded without the need to make
interest installments until the project is completed and you move in.
This saves having to service a loan while also paying an existing mortgage
or paying rent in temporary accommodation. Ask one of our
consultants about the options available.
If this doesn't work or doesn't suit, what options are
available ?
At Murray Homes we offer home and land packages we already own the
land and for a fee we may be able to forgo the progress payments normally
required. This may make it much easier for you to obtain funding
from your bank or via a mortgage broker. Special conditions apply
and we normally only offer this to first home buyers so ask one of our new
home consultants for more information and to see if this produce might
apply to you.
Other possibilities from Murray Homes include:
* Save your deposit while we build your home
* Repay consumer debt (credit cards & HP's) while we build
Financing
a new home or a building project can seem like a difficult prospect.
Relax, we have years of experience at putting together finance packages to
build new homes for all types of different customers. Let us show
you how easy it can be.
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