construction – how does it work?

Hi quyhutmau & welcome to the forum,

The 107.5% construction loan allows you to borrow 100% of the combined land and construction cost,
The remaining 7.5% can be used to capitalise LMI and or closing costs such as stamp duty etc into the loan.
However, the LVR must revert back to 100% after construction is completed.

107.5% LVR no genuine savings required.
Owner occupied only.
Rate approx. 8.34% reverts to approx. 7.79% in year 3
LMI approx. 2.25%
No on going fees.

Regards
Steven
Mortgage Broker

Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.au

PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.