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Obtaining house construction finance can be a complex and time consuming process; especially if you are unaware of the products available and the individual requirements of the various lenders within the market.
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This is why house construction finance is best handled through a Mortgage People™ broker. We are aware of the differing requirements and processes of each lender, allowing us to find the best lender to suit your individual situation.
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Mortgage People™ have over 15 years of experience within the mortgage broking industry and are one of Auckland’s largest mortgage broking firms. We work alongside the lenders and clients in order to get the best deal for you, and to meet the loan conditions that are likely to be unique to each lender.
| Building your dream home can often be a stressful and very time consuming process; therefore we want to make obtaining finance for this dream to be as stress freeas possible, and have included a few industry tips and buying advice for your benefit. |
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Home Loan Tips and Buying Advice
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It is important that you have a clear understanding of the processes, including the expectations of your builder and lender in order to help you make the right decisions throughout the entire process. This will reduce, if not eliminate, any unnecessary frustration and concern.
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The stress of building can be minimised simply by choosing a lender that specialises in building finance. Your Mortgage People™ broker can help you find the best lender to suit your situation and requirements.
- Consider all finance options (as you need to ensure that you have sufficient funds to complete your home):
Labour only contracts
These generally make budgeting almost impossible, and we would recommend against this option as this is where most clients fall into difficulty
Fixed price contracts
These predetermine the total cost of construction and are a requirement for most lenders (be sure to budget for unforeseen and often neglected costs so that you don’t run short of funds during construction)
Partially fixed price contracts
These may exclude items such as floor coverings, driveways, landscaping or fencing. Therefore you need to be clear on what is and isn’t included within the contract in order to avoid frustration and running out of money
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Frequently, homeowners run short of funds during construction. This happens for a number of reasons including unforeseen cost overruns above the contract price and underestimation of additional fees and costs including architects, lawyers, permits, floor coverings etc. These factors should all be taken into consideration when choosing a lender. We recommend you thoroughly crunch the numbers and have a buffer in place in case you run into trouble. We can help you through this process and put you in touch with the right people. Most of this frustration and stress can be avoided by simply choosing a reputable construction company to build your home, or through the use of a fixed price contract.
