MyRate Construction Loan
Posted July 22nd, 2010
and last modified January 31st, 2012
What happens when I click Enquire Now?
- Clicking Enquire Now will take you to the lender's website
- After completing the contact form, a mortgage expert will contact you
- The mortgage expert will ensure you find the right loan, calculate your repayments, and explains all the associated fees
- After going through the enquiry process you will be able to know how much you can borrow, begin your application when you are ready to apply and be approved for a home loan
The MyRate Construction Loan can help you fund renovations to your current home or allow you to build a new home. Renovating is a great way to increase the equity which has accumulated in your current home while building a new home is a great way to increase your investment portfolio.
Features of the MyRate Construction Loan
The MyRate Construction Loan has a variety of features that can take away some of the stress when renovating or building a new home. This ensures that all your attention is focused on the job at hand and you can start paying off the loan after construction is finished. The main features of the MyRate Construction Loan are:
- How much can you borrow. For a total loan term of up to 30 years you are able to borrow up to 95% of the land and construction value. You can borrow any amount between $100,000 and $1,000,000 when you apply for the MyRate Construction Loan.
- Interest only payments during the construction period. To allow you to focus your spending on the construction of the home you may only have to pay the interest portion of the MyRate Construction Loan payments. This will ensure that all the attention is focused on getting the house built. In addition to the interest only period during construction, you are able to continue paying only interest for up to 5 years.
- What happens after I finish construction. After the home is complete and has been valued your payments will change. You will now be required to pay both the interest and the principal repayments of the loan. The interest will be calculated on the calculated using our variable low rate.
- Can you split the loan. Upon request you are able to split the loan after the construction period is over. You are able to have up to 4 splits each with a minimum $25,000 value. You are able to partition amounts of your loan into 4 parts which can all be under different rates. This will allow you to take advantage of all the additional features that each loan scheme may have. Furthermore, by subjecting some of your payments to a variable rate and some to a fixed rate you can take advantage of lower interest rates while protecting yourself from rate rises.
- Other features available after the construction period. When the construction is finished you can take advantage of the unlimited redraw facility, interest offset account, the ability to make additional payments and the portability of your loan.
- Fees. A final home valuation fee of $295 is charged when the house is fully constructed and legal expenses may be charged by another party. However there are no application, legal, settlement, redraw or ongoing monthly fees charged with the MyRate Construction Loan.
- Who is suited to this loan. The MyRate Construction Loan is suited to people who are planning to buy land to build a home and people considering doing major renovations. Building your new home can take some time and the MyRate Construction Loan has some features that allow you to reduce costs during this expensive time.
If you are considering building a new home or doing major renovation to your old home the MyRate Construction Loan can give you the funds to do this. The lower payments during the construction period allow you to concentrate on construction and may help you pay off your other loans if you are waiting to sell you old home. You can discuss your home loan needs with Home Loan Finder now to help you decide if a construction loan would suit your building needs.
Read the MyRate Construction Loan terms and conditions.
| Minimum Loan Amount | $100,000 | |
|---|---|---|
| Maximum Loan Amount | $1,000,000 | |
| Maximum LVR | 95% | |
| Mortgage Offset Account | No | |
| Loan Redraw Facility | No | |
| Split Loan Facility | No | |
| Fixed Interest Option | No |
| Interest Rate Type | Variable | |
|---|---|---|
| Interest Rate | 6.15% | |
| Comparison Rate | 6.15% | |
| Repayment Type | Principle & Interest | |
| Repayment Frequency | Weekly | |
| Extra Repayments | Yes |
| Application Fee | $0 | |
|---|---|---|
| Legal Fee | $0 | |
| Valuation Fee | $0 | |
| Service Fee | $0 | |
| Settlement Fee | $0 | |
| Exit Fee | $250 |
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|---|---|---|---|---|---|---|---|
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|
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