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Home Loans

Building Your Home

 

Step 1

How much can I borrow?

Before you start sketching out your grand designs, work out how much you can borrow to build and what your repayments may be on our calculators.

Important information Important information Show content

Results are based on a single, full time PAYG income with no dependants. Any upfront costs that may be associated with the loan are capitalised in the loan amount. The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The actual amount you can borrow may vary depending on factors including your verifiable net income, other debts or liabilities you have and the number of dependents you have. Lending is to approved applicants only and all lending is subject to a detailed credit assessment.

Fees and charges are payable. The calculations do not take into account fees, charges or other amounts that may be charged to your loan (such as establishment or monthly service fees or stamp duty). If you are borrowing more than 80% of the value of the property, Lenders Mortgage Insurance may apply. Any of these additional amounts will increase repayments under the loan. .

Repayment is for principal and interest and is indicative only based on the stated information. Changes in interest rates, repayment frequency and loan term will affect the repayment amount.

Assumptions

Expense Details and Default Values
The calculator initially assumes that the borrower has a minimum set of annual expenses of $17,004.
Maximum percentage of income available - currently set at 100% of income

Month
All months are assumed to be equal. In reality, many loans accrue on a daily basis this can lead to varying interest in different months.

Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus the assumption is for a 364 day year.

Rounding
The calculator uses the unrounded payment to derive the amount of interest accrued over the full term of the deposit, however, institutions round repayments to the nearest cent.


Important information Important information Show content

The calculations provided are estimates only and based upon the information entered into the calculator by the user. The calculations do not include upfront or continuing credit fees and charges. The resulting calculations do not constitute a loan application or variation to an existing CUA facility, loan offer or loan approval.

Rates current as at 16 October 2018 and subject to change.

Your needs and financial circumstances have not been taken into account. Terms, conditions and Lending critieria apply and are available on application. Other fees and charges may apply. A General Information , Terms & Conditions brochure and Schedule of Fees are available online or from your local CUA branch. You should read both these documents before deciding whether to purchase this product, issued by CUA.

Comparison rate calculated on a $150,000 secured loan over a term of 25 years based on monthly repayments. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

What other costs do I need to budget for?

When drawing up your budget, factor in other upfront costs. While builders and suppliers will make up a large percentage of your budget, also allow for:

  • Rent while you’re building
  • Site inspections
  • Solicitors fees and conveyancing
  • Local council levies and permits
  • Stamp duty
  • Insurance
  • Fixtures, fittings and furniture

Important information Important information Show content

The results from this calculator should be used as an indication only and is based on the accuracy of the information you provided.

Things to consider
When building, you have a great opportunity to make your home more energy efficient. The design, floor plan, insulation and appliances you choose can make your home more comfortable to live in and reduce the cost to heat and cool your home.
If you’re building your first home, you may be eligible for a First Home Owner Grant. The grant is administered and funded by the state and territories, and can be accessed once the slab is down.
Find out more
Your builders and tradespeople can make all the difference to the success of a building project. Ask around for recommendations from family and friends, and speak to people they’ve done work for in the past. Get at least three quotes from different contractors, and check they’re licensed.

Step 2

What steps are involved with a construction loan?

To help you navigate through the process, here are some handy tips.

To apply for a construction loan you will need copies of:

  • A planned Building Contract, with the Payment Schedule and Specifications of Construction (this need to be a signed contract by both you and your builder).
  • The construction plans to be lodged with your local council.
  • Final executed Building Contract, including the Payment Schedule and Specifications of Construction.

After your loan is approved, you will need to provide these documents to release the funds to your builder:

When the loan is approved, send the documents below to release the funds to your builder:

  • Council-approved construction plans
  • Evidence of your builder’s All Risk Insurance
  • Your First Home Owners’ Grant approval (if applicable).

Three valuations will need to happen throughout the construction:

1. Initial valuation – this is done at the loan application stage
2. Lock up stage valuation – when the home is about 50% complete
3. Final valuation – upon full completion.
Each valuation will take about five to seven business days to complete.

There are usually six stages of payments throughout the build:

1. Deposit
2. Slab
3. Frame
4. Lock-up
5. Fixings
6. Final Completion

Progress payments are made once we receive a valid invoice and a signed Progress Payment Request form.

Ask your builder to include on their invoice:

  • ABN and company details
  • Address of where renovation/construction is taking place
  • What stage they’re claiming for
  • GST amount
  • Invoice number and date
  • Builder’s bank account details, including BSB number.

Once your house is built, the final progress payment will be made when we receive a:

  • Certificate of Occupancy (C of O) & Use (provided by your builder)
  • Council Final Inspection Certificate/Final Occupation Certificate (not needed in Western Australia).
  • Copy of your building insurance noting CUA as the financier.
  • Valuation from a valuer confirming the work has been completed as per the contract.

Step 3

What is the best loan for me?

A construction loan is an ideal option if you’re building or buying land to build on. It helps to reduce your interest payments during construction, as you draw down your loan in progress payments while you build.

Construction loans are interest only for the first 12 months of the building phase. Once finished, you stay on the same loan (for example, a CUA Fresh Start Variable Rate Home Loan), but for variable rate loans it transfers to principal and interest home loan. For fixed-term loans, it’s interest only for the fixed rate period.

All of our home loans are available for construction, apart from our equity line of credit. Use the home loan selector tool below to find the right one for you.

Fixed vs variable rates
  • Provide security because your repayments are set for a period of time.
  • Protect you against rate rises, but you won’t benefit from a fall in rates.
  • Are usually less flexible - if you change financial institutions, sell your home, or pay off your loan within the fixed period, you may be charged an early payout fee.
  • Give you more flexibility, but leave you open to changes in interest rates.
  • Usually have more features – like an offset account, the ability to make extra repayments and to pay off or move your loan without penalty or early payout fees (but they may have a discharge fee).

Which home loan suits me?

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Will this be your primary place of residence?
Do you want a fixed or variable rate?
Do you require an offset facility?
Do you require a redraw facility?

Your results

Max LVRΔ
Fixed/variable
Interest rate
Comparison rate*

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