Financing your new home
Build now, pay later!
You can relax during your new home build with the option of building now with no loan repayments for 12 months!
HomePay - Build now, pay later
At Tempo Living you have the option to apply for finance through HomePay . HomePay has pioneered a “build now, pay later” home loan product, which is only available with builders that have met their accreditation standards. Tempo Living is one of those builders.
With HomePay, out of pocket mortgage repayments are paused while your new home takes shape, so you can still afford to pay rent or pay the mortgage on your current home while you wait for your new Tempo Living home to be built.
Features of HomePay include:
- No out of pocket loan repayments for 12 months
- Includes both house and land loan repayments!
- Market competitive rates.
Who is HomePay for?
First Home Buyers
Ideal for people currently renting who would struggle to manage rent and mortgage repayments simultaneously. HomePay provides a tailored solution to ease the transition from renting to homeownership. Plus, first home owner grants are accepted.
Second Home Owners
Designed for homeowners who want to build a new home but need to navigate the process of selling/renting their current property while their new home is under construction.
Investors
Designed for investors looking to build a new rental property and want the convenience of timing loan repayments once the property begins generating rental income.
Finance pre-approval
In the home buying journey It is important to know your budget from the outset and have pre-approval for your finance. Understanding how a construction loan works and how a mortgage broker can assist you can be beneficial.
A mortgage broker can guide you through all the different options to select a suitable home loan, saving you time, effort and best of all, money. They can also help you understand the process to refinance if you need to.
It doesn’t matter if you are in the very early stage of your home buying journey they can help you early on by suggesting the ideal deposit based on the average price you’re looking to spend, assist you with loan products when you have a deposit saved and even step in last minute if you’ve found the perfect property and are ready to buy.
For First Home Buyers, you should visit a broker early on, as it’s important to have an expert explain to you the entire home buying process, including how long everything will take, what fees to expect, and what you need to organise.
If you need assistance we can put you in touch with an independent mortgage broker who specialises in construction loans, with access to over 40 lenders, they will help you find the best loan to suit your individual needs and requirements and assess your eligibility for any Government Schemes or Grants and HomePay.
FAQ’s
A construction loan is different to a loan to buy an existing property, where the total amount of your loan is available immediately. Construction loans have been designed specifically for home building. The capacity of your construction loan is based on the value of your fixed-price building contract and because Tempo Living Homes offers fixed price contracts, you’ll find that most lenders will cover the total construction cost.
The lender dispenses capital in instalments at specific stages of your construction project. The total value of the loan is tied to the total cost of the construction, which is why lenders typically expect a fixed-price contract before approving a loan. The lender makes these progress payments directly to the builder. The key benefit of a construction loan is that it allows your home build to progress efficiently and seamlessly.
Construction loan interest rates tend to be a little higher than home loan rates. Lenders do that to account for the risk they’re taking — it’s easier to value a home that’s been built compared with one that only exists in your dreams.
You do need to pay a deposit to secure a construction loan. The value of that deposit will depend on your lender. You can typically expect to pay a 10-20% deposit for your construction loan, which is in line with most home loan deposits.
Before approving your construction loan, your lender will conduct their own assessment to determine the ultimate value of your yet-to-be-built home. If you secure your loan with a deposit of less than 20% of their valuation, they may ask you to pay Lenders Mortgage Insurance (LMI) to cover their risk.
If just the thought of applying for loans gives you a headache, we’ve got good news — we can put you in touch with an independent mortgage broker who specializes in construction loans to guide you through the entire process, from comparing loan products to applications.