How to secure your home finance

How to secure your home finance

Black & White Quotes

Buying a block and building a home is generally a terrific investment, but it also requires you to know what you’re paying for and to have your finances in order before engaging the builder.

When building with Stroud Homes, the company makes sure it provides you with a complete black and white quote, which includes everything, so you don’t get any nasty or costly surprises along the way.

However, minor things like landscaping and blinds might not be included into the house build and the final price, so thing like those should be taken into consideration.

 

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How do I apply for a home loan?

Easy! Just let us know and we will put you in touch with our finance experts who will guide you through the process smoothly and efficiently.

In most cases, its just a couple of forms to fill out with your financial information.

What information will I need to gather to apply to finance my new home?

You will need your current house hold income, recent payslips, any other current personal loans or mortgages along with statements.

You also need to provide some of your monthly household expenditures to help give our finance experts a guide to your servicing capabilities.

Additional info required:

  • Identification Documents for each person on the loan – typically driver’s licence and/or passport (for photographic ID) and a Medicare Card as a minimum.
  • The last three months of Transaction Account Statements.
  • The last three months of Personal Loan & Credit Card Statements.
  • If refinancing (Land Loans or additional Security Property as part of any increase) – the last six months of Existing Home Loan Statements.
  • Proof of Deposit/Own Funds – Savings Account Statements (at least three months savings history showing consistent savings being deposited with little, or preferably no withdrawals).
  • Rates Notice for existing properties (if applicable).
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What is Pre-Approval and how long does it last?

A pre-approval is a formal approval you get from the lender who has ‘pre-approved’ the amount you are applying for, which is usually subject to the land and build contracts.

Every lender and situation can vary, but it usually last a few months.

How much is the deposit that you pay before your property is built?

Usually you will pay a deposit for the land you are purchasing, anywhere from $1,000 – $5,000, depending on the developer or owner.

The builder requires 5% deposit of the building cost on contract signing. This cost is usually provided by the lender or part thereof.

Find out more: Looking for new home financing?

Can you explain stamp duty and how it works?

Stamp duty is a government tax on certain transactions. You generally need to pay it when you buy a motor vehicle, insurance policy or real estate.

Stamp duty on a property can also be known as ‘land transfer duty’ and is only paid on the land component.

The amount of stamp duty that applies to a transaction varies depending on where you live, the type of transaction taking place, and its value.

Find out more about your Transfer Duty Rates in Queensland.

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What are construction loans and how do they work?

A construction home loan is a type of home loan designed for people who are building a home as opposed to buying an established property.

It has a different loan structure to home loans designed for people buying an existing home.

A construction loan most commonly has a progressive draw-down. That is, you draw down the loan (or increase your borrowing) as needed to pay for the construction progress payments.

The amount available to borrow will be partly based on the value of the property upon completion of the construction.

A construction loan will usually be interest only over the first 12 months and then revert to a standard principal and interest loan.

What happens if my construction costs increase?

The only reason your construction costs should increase whilst building with Stroud Homes Caloundra is if you decide to upgrade or add something into the build once the build has commenced.

In this case usually the banks will not cover anything outside of the contracted amount.

Your Local Builders
Heath Nicholson
Heath Nicholson

Ask us about finance for your new home