If you’re currently saving up to build your very first home, chances are you’re eager to know how much you will actually need to kick start your journey. The financial aspect of home building can get quite complicated at times and add on extra stress if you’re not given the right information. As experts in homebuilding, we recognise that the variations can get overwhelming for new buyers and have curated some tips and tools you can use to make the process as easy as possible!
Now to put it bluntly, the more you save, the more you will be able to borrow. Generally speaking, it is recommended that you save at least 20% of your prospective purchase price to apply for a loan and although this is promising advice, it doesn’t necessarily apply to home building.
If you’re a first home buyer, then you may be eligible for the first homeowners grant and first home loan deposit scheme, meaning you may be able to purchase your home with as little as a 5% deposit. Additionally, if you are planning on purchasing a home and land package, you generally only need a 5-10% deposit to qualify for a house & land package loan. You will then need to pay off the package in progress payments, depending on land exchange and land registration dates.
If you have already purchased a block of land, you’re probably curious to know how much it will be to secure the price of just the home. This price usually amounts to roughly $1,500 to begin with but you will then need to subsequently make progress payments at different stages of your contract stage. To put it simply, you will need roughly 5% of the full contract price to move from contract signing into construction.
We recommend getting in touch with a finance advisor today to find out what your borrowing capacity may be and whether you currently may have enough to apply for a loan. You can do this by contacting our independent finance broker here for a free consultation! Alternatively, if you have only just decided to begin saving for your very first home, you can read our best tips on how to save for your first home deposit here!
Domaine’s Confidence Guarantee
Domaine has recognised the uncertainty many are feeling during these trying times; and want to accommodate in any way that we can! We don’t think you should put your dreams on hold and also don’t think that this decision should be half hearted. To combat these uncertainties, we have lowered our initial deposit to just $500 – putting $1,000 back into your pocket!
Not only have we lowered our deposit price but will also offer you a full refund* of your initial $500 deposit if you are no longer able to commit to your build and cannot proceed due to COVID-19; offering you complete confidence with your decision to proceed!
Whatever stage of the home building process you are in, Domaine Homes is here to assist you! We have a team of experienced professionals and consultants behind us who are ready and willing to help you with any concerns or questions you may have! That’s our Domaine.