Mortgage Minute: Lending for new builds
Land and build is exempt from the reserve banks loan to value restrictions meaning as an owner occupier you can get going with a minimum of 10% deposit everyday of the week, as it does not count towards their limit for highly leveraged funding.
It's important to note that you will need a minimum of 20% deposit when settling on the section but can leverage up to 90% when you start building.
Buying off the plans is also exempt from the LVR’s and can be done from as little as 5% deposit if you are an owner occupier, more for an investment property.
We sort the approval for the section and the build at the same time with conditions to meet before you can proceed, such as a building contract, plans, registered valuation, consent and the builders all risk insurance being sorted.
It can be a long process but Loan Market has your back and will manage this process with you, so if you are looking at building your first home or your dream home give us a call on 441 1307 to get started.