HOME CONSTRUCTION LOANS

Renovating or building a house?

Looking for Home Construction Loans? Whether you are renovating your existing home or building a new one, you will need home finance.

TYPE OF MORTGAGE -

There is a specific type of mortgage used when building. This is because the lender does not want to give you all the money at the start of the project - in case the building (which is their security) doesn't get built.

It is commonly known as a Construction Loan.
(Find out more about types of mortgages here ).

We recommend a number of Local Building Services through personal experience, and satisfaction with the products and service.

MAKE IT EASY
GET PROFESSIONAL HELP TO GET YOUR HOME CONSTRUCTION LOAN

For those of you who live in the Waikato or Bay of Plenty, regions of New Zealand, we have experienced, professional mortgage brokers available to help you with your inquiries about Home Construction Loans.

Never used a Mortgage Broker before? There are many good reasons for choosing professional help with securing your Mortgage Finance.

"Abacus Finance recommends Strongline Buildings for the strength of steel, the durability of Tri-Steel engineering and the fast, efficient Strongline Construction Process."

Interest rates are also generally different for a Home Construction Loan.This is because your loan will be on the floating rate during the house building.

It is usually only possible to fix your interest rate once building of the house is complete.

Keep up to date with the lowest mortgage rates using this fantastic service which you can subscribe to, and get a daily interest rate email. Current mortgage rates.

First Time Building?

You have to learn and understand many new things, even if you have contracted a building company that will handle most of it, you still need to keep some track of what is going on.

Plus, very few of us are comfortable with letting someone else have complete say over the final visual details of the decor.

Whether you are going to live in the property or not, the colour of the walls, the fabric of the curtains, lighting, door and bathroom hardware etc etc all need to be chosen along the way.

Make sure your Home Construction Loan allows for all of these finishing touches too.

We recommend a number of Local Building Services through personal experience, and satisfaction with the products and service.

Property Maintenance

This is something you should think about during the house building process.

- What maintenance needs to be done now?
- What ongoing maintenance will there be?
- Can I do this myself or will I need help?
- Do I have the right tools / equipment to do the job?
- Do I have the right skills to do the job?
- Will I have to pay someone to do the maintenance?
- What will the cost of the maintenance be?

The type of maintenance required may include:
- mowing lawns
- weeding and planting gardens
- painting fences and buildings
- cleaning gutters
- repairing structures
- cleaning of the buildings, fences, pathways

(Have a look at the range of equipment from Powerwashers designed to make your workload easier.)

The list can go on.... so it is something you have to factor into your building process.

If you live in the Waikato:

We recommend our local broker, Waikato Mortgage Broker, who have many years experience in home finance options and banking, and provide good service and answers.

If you live in the Bay of Plenty:

We recommend our Bay of Plenty Mortgage Broker, with their years of experience both as brokers, in the real estate industry and as investors in the property market.

Using a mortgage broker is a really easy way to explore all the options while saving you a lot of time when you are looking for Home Construction Loans.

They are used to dealing with the banks and will understand what is the best option for you.

There are many home loan lenders in New Zealand.

The big players are what are known as the "Major Banks":
- ANZ New Zealand
- The National Bank
- Westpac New Zealand
- ASB Bank
- Bank of New Zealand (BNZ)
- Kiwibank

However, there are also a large number of other Mortgage Lenders around, including Banks, Credit Unions, Building Societies, Finance Companies and other Institutions.

Many of these are what are often termed "Second Tier Lenders" but don't make the mistake of dismissing them as they are often highly competitive.

They provide an excellent answer for many mortgage seekers who do not meet the lending criteria of the major banks, and they still play a large role in the Mortgage Market of New Zealand.

Click here for a full list of Mortgage Providers.

Managing the Cost of the Build

The reality is that there are often unexpected extra costs when building.

- Perhaps the ground needed more work than planned once the earthwork began?
- Maybe you decided to upgrade the quality of your kitchen or bathroom fittings?
- Or did the weather cause delays and rework?

Whatever delays or problems you might experience during the build that is out of your control, at least the pre-planning is within your control.

There are many different choices to be made, and each decision brings a cost with it.

Knowing your costs is the key to creating, and maintaining, your house building budget.

Especially if you are getting a mortgage (home construction loan) to construct the building.

One way to keep costs down right from the start is with the design and plans. You might seriously consider purchasing a set of blueprints that are already complete. Often the design of whatever you are building is quite straightforward, but you still end up paying a lot for the plans.

Building A Green House

If you have an interest in learning more about building a green house, or an eco house, then have a look at our Eco House information.

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