Super Finance > Home Loans Melbourne > Building Your Home

Finance to build your home

There are few experiences as rewarding as building your own home. Of course, the finance you need to secure your land and build your home is a little different from other home loans.

At Super Finance we're experienced in home building finance – and can help you avoid common pitfalls and get your home completed with fewer hassles. Things to consider include:

• Interest-only payments during construction – freeing up cash when you need it.
• Only using lenders who provide progress valuations to protect your interests.
• Finance tailored to either 'house & land' or 'house only' scenarios.

There are typically two scenarios when you're building a home: one, when you already own the land ('house only'), the other when you're buying a house and land at the same time (i.e. a 'house and land package').

Construction loans for house and land

When you're buying land and constructing a home, there are two major financial transactions: the first transaction takes place when you buy the land, the second when you pay the builders.

Both these transactions can normally be accounted for in a single home loan, but it's the timing of the individual payments that becomes critical to keeping construction on track.

To reach settlement, you generally only need to repay the amount for the land portion of your loan. This means you're paying interest on only a small part of the total loan, keeping your repayments low. This frees up funds so you can continue making other payments (e.g. on your existing property, or to pay for rental accomodation while your home is being built).

At specified stages during the building process, you'll need to make payments to builders, and your loan is gradually drawn down until the process is complete.

House construction only loans

Just like with construction loans for house and land combinations, ensuring that your finance is available at the right time means construction doesn't stall, and your costs are kept to a minimum.

At Super Finance, we know how builders work, and how your finance needs to be structured. In fact, builders frequently refer their clients to us because they know we understand!

Planning to build your own home? Contact Super Finance for finance that saves you money – and unnecessary hassle.