Like the people that work within the banks, many of the Auckland mortgage brokers do not know much about financing new builds.
Some people will find it easy to get a pre-approval, but when it comes to understanding exactly what is needed the bankers and many brokers struggle.
Traditional Finance Versus New Builds
Traditional finance is quite easy to understand – you need a certain amount of money of the settlement date to pay for the house that you are buying.
New builds can be financed in a number of ways and there are a number of variables too that need to be factored in.
- You need to ensure that the lending matches the build contract so the money is available at the right time.
- The timing is important as the longer it takes to build the house, the more it costs in interest.
- You need to know what might cause cost over-runs – even when it is a house and land package with a fixed price contract!
- Understand the flexibility within the build contract.
- Know what you need to do before you move in.
Good advice can literally save you thousands and reduce your stress levels too.
This is why many people now use a mortgage broker who has specialised knowledge and experience, and that is one reason that I set up this website: New Build Finance
Know About Financing New Builds
Generally there are three periods to consider;
- Pre-getting started – the time when you need to ensure that you have the deposit available so you can move quickly when you see the section that you want.
- The build itself – making sure that you can manage the build and finance.
- The completion – when you are required to make the final payments and switch from new build finance to a standard mortgage.
A good loan set up will be flexible enough to chance as you move through the build process.
As a specialist I can help ensure that you have the right loans for financing your new builds and beyond.