March 2016's Property Gazette

Thinking of building? Look into your finance options carefully

You may be wowed by builders’ 5% deposit options, which is common in the market place. However it is slightly misleading. Although they (the building company) may only require a 5% deposit you will be highly unlikely to secure finance for only 5% especially on a build. Ask yourself the question where is the shortfall coming from?

In reality you will likely need between 10 – 20% deposit depending on your situation. We recommend talking to us before you begin looking for builders so you are armed with a pre-approval from the lender and know what your budget is for the build.

Working out your finance options

When you build, your home loan is approved for the full amount, but you draw it down in instalments as the building work progresses.

Therefore, it is essential to get a fixed priced contract which sets out a progress payment schedule.

Building is a very exciting process when armed with the right information and realistic expectations on not only what you can borrow but the whole build process.

Advanced Mortgage Solutions have helped hundreds of people secure the finance to build their new home, call us today to find out how we can help you.

  • Fast process, easy to understand and amazing communication from Scott!
    Krizzia Pierard - 13 March 2024
  • Scott has been amazing in helping us purchase our first home. A wealth of knowledge and amazing communication! I am self employed and we could not have navigated this without his help. Thanks Scott!
    Kris Hoskin - 04 March 2024
  • Very impressed with the information and the way it is presented. Highly recommend Scott, he found the best option for us and kept us fully informed along the way.
    Lynne Godden - 29 February 2024
  • Scott has been amazing in helping us navigate our first home purchase. He had excellent communication and was incredibly responsive to any and all questions. Our financial literacy has increased 10-fold. We would not hesitate to recommend Scott to all our friends and family. Thanks Scott!
    Kirsten Evans - 29 February 2024
  • Scott was knowledgable, transparent and endlessly helpful throughout the entire mortgage process. As first home buyers, we would have been lost without his guidance and assistance. I highly recommend him and the team for all things mortgage and kiwisaver related.
    Rebecca Edwards - 27 February 2024

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