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There are times in life where you just cannot find that home you've always dreamed of. You've looked at thousands of homes and quite frankly, you think that designers in this country just don't cut it! Well that's when most people decide to build a home. Building your home allows you to choose what you'd like your place to look like. A building loan is merely a structured approach to paying out a home loan. Remember that with all building loans, there is a land portion, often vacant land, that must be paid for, and a construction that needs to take place for the actual house, which also needs to be paid for.
Bank requirements for building loans that are standard across all South African banks:
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Building Loans are for:
- vacant land
- the financing of the construction of a dwelling
- additions or improvements to an existing home
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Progress payments are made against completed work subject to a pre-determined number of draws (each stage of the building process is assessed by the bank, at which point they will release more money into your building bond account). Most banks retain a final payment for you the owner to sign off a happy letter, content that all is well. VERY IMPORTANT - With most building loans, you and/or your builder must have started building before you make your first draw against available funds. DO NOT GET CAUGHT OUT! This can be expensive and very frustrating. |
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The builder must be NHBRC registered - The NHBRC is here to protect you the buyer and to make sure that builders keep to a regulated standard ( Visit this site ) - www.nhbrc.org |
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Normal home loan criteria apply. |
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Building has to meet the bank's minimum specifications and requirements. For specific bank requirements, contact Mortgage Plus. |
Complete the online form to apply for your Building Loan.
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