Banks Announce 95% mortgages available for Turn Key Build Contracts (4th Feb 2014)
The Reserve Bank's decision to exempt new house construction from the over 80% LVR restrictions is a positive move that should help to ease the housing shortage. ANZ Bank has today announced they are able to lend up to 95% for a Turn Key build contract, subject to normal lending criteria. It is expected that other banks will announce similar options.
A turn-key contract is a fixed price contract with the building company. You pay the builder an initial deposit to get started on the project, and the mortgage funds are not paid over until the project is completed. A turn-key contract covers the construction, appliances, painting, landscaping, curtains and floor coverings, landscaping, letter-box etc - so that when the construction is finished, you can 'turn the key' and move in.
Some build companies offer a house & land package via a turn-key package. This can be an ideal way for first home buyers with a low deposit to gain entry to the property market.
Feel free to contact me at firstname.lastname@example.org to discuss further details.