Building new house to live in.

Discussion in 'Loans & Mortgage Brokers' started by ElsaAnna, 18th Jan, 2022.

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  1. ElsaAnna

    ElsaAnna Member

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    What do people do when they build a house to live in? Do they just rent while that's happening?
    I feel like I need to sell my existing house to buy my dream property and build my dream house, but I also need somewhere to live. Is there any way a bank will say "we'll lend you the money and you can live in your house until the new one is built, then sell your old house to pay down the loan" ?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If you can service then yes it is possible.Generally bridging loans are not available for building houses.
     
  3. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    If you can service the loans during construction, then yes you can stay living there while building your new one. Standard process with new builds.
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    ""Service the loans"" ...allowing for rent for a temporary period (1 year?) also.
    This is a common broker issue they can advise on. And which lenders and policies are favourable for construction loans.
     
  5. Lindsay_W

    Lindsay_W Well-Known Member

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    Mostly yes

    "You feel like" - I think you should find out for sure if you do need to do this or not, speak to a decent mortgage broker as a first step.
     

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