We have compiled a list of commonly asked questions about low doc construction home loans for your reference.
There are some main points we have touched on below but at the same time there is so much more about low doc construction home loans. We invite you to browse through this information and contact us about any other questions you have and one of our low doc construction home loan consultants will assist.
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Do I have to pay mortgage insurance on low doc construction home loans as the LVR is so low? |
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Yes, mortgage insurance generally begins from 60% LVR and above but given the low LVR the fee is nominal. |
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Can I capitalise the mortgage insurance on top of the loan above the maximum LVR? |
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You are unable to capitalise this fee on top of the maximum LVR the low doc provider offers. |
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Do I have to pay a higher interest rate with a low doc construction home loan? |
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The only time you do pay a higher interest rate in most cases is during the construction phase; this is generally 0.50% above the variable rate. Once construction is complete your low doc construction home loan reverts back to the standard variable rate on offer. |
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What type of information do I need to provide to obtain a low doc construction home loan? |
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Outside of the identification and income declaration there is a specific need to provide a fixed price building contract which includes plans, specs and council permits to build. The low doc home loan provider requires this for approval of a home loan, specifically a fixed price contract as this ensures that the amount funded is enough to cover the construction. |
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Can I make additional repayments on low doc construction home loans? |
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Yes you can make additional home loan repayments |
In essence there is not a great deal of difference between a traditional low doc home loan and a construction low doc home loan. The key points of difference have been covered off but there is always more information available by contacting us and having a chat to one of our consultants.
Alternatively you can contact us and we can arrange an appointment with a low doc construction home loan consultant.
