Construction home loan

RateCity StaffDec 8, 2009( 2 min read )

Home Loans

Five home loans for getting cash out from your equity

With social distancing restrictions affecting many Australian workplaces, a lot of us have had to rethink our personal finances, including our home loans. And with big banks and smaller lenders slashing interest rates to new record lows, it’s no surprise that many Australians are refinancing their mortgages, as shown by recent ABS data.

Jun 25, 2020( 3 min read )

Home Loans

Top refinancing home loans in July 2020

Being in lockdown has given homeowners and property investors plenty of time to think about their home loans. Many banks and other mortgage lenders have been offering a range of financial relief options for customers affected by COVID-19. If you’ve been on a mortgage payment holiday, you may be wondering if you really want to go back to making the same repayments, or if you could get a better deal elsewhere.

Jun 30, 2020( 2 min read )

Home Loans

What is a cooling off period, and how do they work?

A cooling off period is a length of time that follows signing a contract to purchase property, during which a buyer can choose to terminate the agreement without being in breach of contract and losing their deposit. This gives you a window of opportunity to change your mind about a property purchase if your circumstances change, or you decide it’s not right for you.

May 8, 2020( 4 min read )

Home Loans

Five home loans to let you borrow more in July 2020

Many people manage to secure a home loan with a deposit of less than 20 per cent, and that all comes down to what the lender allows.

Jun 30, 2020( 2 min read )

Most lenders these days offer the option of a construction home loan. A construction home loan allows borrowers to pay the home loan in stages while your property is being built. Some institutions will also offer you an interest free period for your home loan. This helps you to afford the cost of construction while also paying a mortgage.

While you have the total amount pre-approved and part of the loan, the stages of payment are also called draw downs and generally include the purchase of the land and several key construction stages. It is a great way for borrowers to save money on interest while their property is being built because the interest you pay on a construction home loan is the draw down amount. So you don’t pay for the cost of the home upfront until it is built.

Australia’s leading home loan comparison service, RateCity.com.au can help you understand how much you will need to repay using our free Australian Home Loan Calculator where you can select different interest rates, repayment terms and other features. You can also compare home loans, including fixed home loans and variable home loans to find yourself a great deal.

If you need some more information you can review RateCity’s home loan guide provides additional information.

RateCity Staff

Today's top home loans products

Discount Offer Variable Home Loan OO P&I ($200k+)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.59%

Variable

2.59%

No upfront or ongoing fees
Extra repayments + redraw services
Free redraw facility
Repayments may decrease if RBA cuts rates

View Now

Home Package Plus Personal Fixed Special (Principal and Interest) 2 Years (LVR 80%-90%)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.29%

Fixed - 2 years

3.32%

Cashback

Refinance and get up to $3,000 cash bonus with an eligible Suncorp Bank Home Loan.

View Now

Live-in Variable Loan (Principal and Interest)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.39%

Variable

2.40%

No upfront or ongoing fees
Extra repayments + redraw services
Free redraw facility
Repayments may decrease if RBA cuts rates

View Now

Star Essentials Home Loan (Amounts $150k-$850k, LVR < 80%)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.39%

Variable

2.39%

special

End of Financial Year Special - No Upfront fees

Enquire Now

FAQs

Tip: You can use RateCity how much can I borrow calculator to get a quick answer.

How much money you can borrow for a home loan will depend on a number of factors including your employment status, your income (and your partner’s income if you are taking out a joint loan), the size of your deposit, your living expenses and any other debt you might hold, including credit cards.

A good place to start is to work out how much you can afford to make in monthly repayments, factoring in a buffer of at least 2 – 3 per cent to allow for interest rate rises along the way. You’ll also need to factor in additional costs that come with purchasing a property such as stamp duty, legal fees, building inspections, strata or council fees.

If you are planning on renting the property, you can factor in the expected rental income to help offset the mortgage, but again it’s prudent to add a significant buffer to allow for rental management fees, maintenance costs and short periods of no rental income when tenants move out. It’s also wise to factor in changes in personal circumstances – the typical home loan lasts for around 30 years and a lot can happen between now and then.

Construction home loan

Related articles

Five home loans for getting cash out from your equity

Top refinancing home loans in July 2020

What is a cooling off period, and how do they work?

Five home loans to let you borrow more in July 2020

Today's top home loans products

Discount Offer Variable Home Loan OO P&I ($200k+)

Home Package Plus Personal Fixed Special (Principal and Interest) 2 Years (LVR 80%-90%)

Live-in Variable Loan (Principal and Interest)

Star Essentials Home Loan (Amounts $150k-$850k, LVR < 80%)

Popular home loans searches

FAQs