House and Land

A house and land package is one of the popular home loan option among the first home buyers. Financing for a house and land package usually consists of two steps -a mortgage for the land and then a construction loan for building the house. A construction loan is taken out in stages, where you 'draw down' an agreed amount to pay for each stage as your home is built and only pay interest on the amount used at each stage.

Usually these loans are bundled together, but if you want to buy land first and then build on it later, you can also apply for the two loans as separate products.

House and land packages can offer many benefits, particularly for first-time home buyers. Some of the benefits of the House and Land packages are,

1. Savings on stamp duty, as the duty will only be calculated on the value of the vacant land and also First Home Buyers might also be eligible for Stamp duty concessions.
2. As the loan is split into different components, you only pay interest on the portion of the loan you are using at the time
3. You can customise the house to suit your needs
4. First house buyers could also be eligible for the First Home Owner Grant
5. You save money on the maintenance and renovation costs as the home is brand new.

HK Finance can help you realise your dream of building a new home and find the best rates and loan option for your situation.

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