Building Packages

Building Packages


What does a building package mean?


Getting a  loan to buy a stand, incurring the costs to draw up plans etc and then getting a further mortgage to finance the house is getting more and more difficult in the economy of today. Too many people run out of money half way through their projects and then the banks are stuck with incomplete assets that more often than not costs a lot of money to finish so that they can be sold.

 Banks are more willing to give 90- 100% financing if they can see the exact plan and finishing that they are financing, therefore making it less risky for them since they know they will have a complete product in the end and that the client is using a reputable, NHBRC registered builder.

 A Building package is a complete packet where the stand, plan and final house is bundled and financed together.  A building package can either be sold with a provided stand and/or plan, or can be put together for your specific needs with a custom plan if you have a stand in mind. Each client is pre-qualifiedand we then go through the process of drawing up a plan that will fit within the client’s pre-approved budget but will also meet with the client’s choice of design and finishes. After a concept plan has been drawn up we will go ahead with costing the plan and getting all the documents ready that the bank requires.

Once the building package loan is approved,  a retention becomes applicable on the loan amount and the funds are advanced to the contractor in stages/ progress payments during the construction period of the house. Once the home is built, the Building Loan reverts to a normal Home Loan.


WHO ARE THEY FOR?

Anyone who is planning to build a home using an NHBRC registered builder.

A home custom built to your specific needs by  either buying ‘off’ plan in any new development (excluding Sectional Title units) or drawing up a brand new concept plans on any stand within a new development.

BENEFITS OF BUILDING PACKAGE

The bank finances the stand and the building together as one, so you do nat have a 40% deposit on vacant land, but rather a 10% or less deposit on the entire package. This guarantees that you will be able to build your dream home.

You can build your dream home to your own specifications.

HOW CAN I GET ONE?

As soon as an Offer to Purchase (OTP)  is signed on a stand, you can contact LCL Construction and we will sit down with you and discuss you specific needs. We can also help to locate a suitable stand if you only have an area in mind but don’t know who to contact with regards to vacant land.

 The first step, after a stand is identified,  is usually pre-qualification by a a bond originator. Thereafter we will sit down with an architect and draw up a house that will fit within in your pre-approved budget. That plan is then costed and all needed documents are signed and sent to a bank, who will then evaluate the entire package – land, plan and house.