New home purchases rise 5.3%
Australians purchased 5.3% more new homes in February than the month before, according to the Housing Industry Association (HIA).
However, HIA chief economist Tim Reardon said this increase was off a “very low” base. Based on the number of new homes being approved for construction and purchased, he forecast there would be a decade-low amount of homebuilding activity in 2024, despite the pent-up demand for housing.
Nevertheless, banks are still keen to lend to Australians who want to build a new home or renovate an existing one. To finance your project, you’ll need a construction loan (rather than a regular home loan). Here’s how construction loans work:
- To apply for a loan, you need to provide the lender with your building contract, building plans and council approvals
- You receive the money in stages (usually five) throughout the project, rather than one lump sum at the start
- You pay interest only on the portion of the loan you’ve received, not the entire amount
- Construction loans typically have terms of 12-24 months; they may then revert to a standard home loan
Get in touch if you need a construction loan.
Hit the button below to arrange a conversation with one of my loan specialists to find a deal that’s best for your situation.
We partner with over 50 lenders so you can find the perfect solution
Do you have questions about mortgages or loans?
Ask us in the comments below