These are usually short-term loans with a term of one year or less, and typically they are interest-only, meaning that the borrower only pays interest during the construction period. The borrower does not begin paying down the principal of the loan until construction is complete, and the loan is converted into a traditional mortgage.
If you are thinking about undertaking a construction project, talk to Your Mortgage Team in Queenstown about your options for construction finance in New Zealand.
Securing self-build finance for your new home
If you are planning to build your own home in New Zealand, you will need to obtain self-build finance. This type of mortgage is designed specifically for self-employed individuals who are planning to build their own home.
At Your Mortgage Team, we have a team of experienced self-build finance specialists who can assist you in finding the right mortgage for your needs. We will work with you to determine how much you can borrow and find an interest rate that suits your budget. Contact us today to learn more about self-build finance and how we can help you achieve your dream of owning your first home.
Fixed-price building contracts in NZ
A fixed-price building contract is a contractual agreement between a homeowner and a builder, specifying a fixed total cost for the project. This type of contract is common in New Zealand, and can be an excellent way to budget for your build.
However, it is important to note that fixed-price contracts can only be used for specific types of work. For example, if you are planning to make changes during the build, or if the scope of work changes, you will need to renegotiate the contract. Fixed price contracts can also be complex documents, so it is important to seek professional advice before signing one.
When it comes to construction finance, Your Mortgage Team can assist you to navigate the complex legal process. With our expert assistance, you can be confident that your fixed-price contract will protect your interests and give you peace of mind. We also provide personal insurance services. Call us on 03 409 0700 today to get started. You can also email us at admin@ymt.co.nz.