Building your first home?
Getting a foothold on the property ladder gets easier once you've got your deposit saved.
Home design and land
Design
Should be an easy place to start. Think about your needs now and into the future – what do you want from your new home? Size, design, functionality – these are all things to take into account, which should help you decide whether going for a house and land package or project home or getting something custom designed.
Each of these options has different costs associated, so knowing what you can afford from the outset is a must.
Land
If you’ve chosen not to build on your existing block, make sure your new land into account when thinking about your new home design.
Having to make site changes retroactively to accommodate an irregular design can really set you back, so be sure to have a site inspection before you commit on both land and design.
Choosing a builder
Making sure you have the right builder for your project is key. Luckily, it’s not something you have to do alone. If you’re going with a house and land package through a developer, they may be able to recommend a selection of builders to complete the project. If you’re building a custom home, get some recommendations from friends who’ve gone through this process successfully, or talk to the Master Builder’s Association and get some quotes from local builders.
When selecting your builder, ask for as much info as you can before committing. You should be able to request plans and costings for each aspect of the build and an accurate completion timeline.
Before you sign, have a solicitor or conveyancer look over the plans agreement, home indemnity insurance, building contract and contract variations agreement.
Getting a home loan
The two most important factors in staying on top of your build finances are knowing the full cost, and having your loan approved and in place before you break ground.
Knowing the cost
Firstly, calculate how much your deposit will need to be, and have your solicitor or conveyancer determine how payments will be made. If you prefer to have more control, you may like to ask if you can make progressive payments only after work is completed and inspected in stages. If you prefer to pay all in one go before the home is built, as for ‘price on completion’ in your initial quote gathering process.
Getting your home loan approved
Speak to your bank sooner rather than later, and be sure to keep them updated on any deadlines in place during your build process. When applying for a home loan, be sure to take into account costs like Stamp Duty and Legal Fees.
Contracts and cover
Signing contracts
If you’ve agreed on costs, take the time to go over your contract with your solicitor or conveyancer. Don’t make the mistake of keeping quiet here – changing contract details after signing can be costly.
Local knowledge
Get in touch with your council and make sure your contract complies with local laws and requirements. Ensure your builder is responsible for securing the required licences and permits.
Insurance
You’ve come this far, so make sure you have insurance in place before construction kicks off to cover your land, property and site visitors.
Build and handover
Now comes the exciting/stressful part – the build.
Your builder will usually invite you to a pre-build meeting, but don’t let this be the only time you speak with them throughout the process. Staying involved and in touch means you’re able to make decisions on design and budget should they arise.
If life gets a bit hectic and you’re struggling to keep up with the project, you can always call in some help in the form of an independent building consultant to manage the build.
Soon after the build is complete (usually within 7-10 days) you’ll be ready to collect your keys, make any final payments. Make sure you collect a copy of all relevant warranties as agreed in your contract, and get written authorization from your builder that it’s safe to move in.
After that, it’s all yours!
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^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
#Discounted rates available for new home loans $150k+, with LVR of 80% or less.
~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.
‡A prepayment fee applies to fixed rate loans if you make more than 5% in extra payments. Contact us before making additional repayments to get an estimate of the prepayment fee.
Interest Only home loans attract a 0.10% p.a. margin above the applicable Principal and Interest interest rate. Your interest rate which includes any margins, will be set out in your loan contract.
◊Cashback offers:
*Online Cashback of $2,500 for eligible home loans $250-$499k or $3,000 for loans ≥$500k available for applications submitted via the Greater Bank Digital Home Loan application channel (online application) with 80% LVR or below. Excludes refinances from Greater Bank or Newcastle Permanent. If eligible, cashback payment will be made within 60 days of the loan settlement date (loan must still be open at time of payment). Only one (1) cashback payment per eligible loan and for first eligible loan only. Not available in conjunction with any other cashback or promotional payment (except any interest rate discount offered). Offer may be varied or withdrawn at any time. See the full Online Cashback Offer Terms and Conditions.
+Cashback of $2,000 for eligible home loans $250-$499k or $2,500 cashback for loans ≥$500k available for refinance applications submitted via Greater Bank lenders (not online), with 80% LVR or below. Only one (1) cashback payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions.
**$2,500 cashback for loans ≥$250,000 with LVR less than or equal to 95%. Only one (1) Cashback Payment per eligible loan, and for first eligible loan only. All borrowers must be a first home buyer, which means they have never owned or co-owned a residential property. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full First Home Buyer Cashback Offer Terms and Conditions here.
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