No need to stew over your decision any longer, we have gone ahead and put together everything you need to know from a financing aspect, and how our team at MyChoice Home Loans can assist you in organising your funds needed to start constructing your brand-new dream home.
How much does a knockdown rebuild cost?
To determine how much you may need to borrow to finance you’re rebuild you first need to determine how much this total project may cost you. This can be a bit tricky – our mortgage consultants recommend firstly to discover how much the demolition of your current home will cost, which can vary depending on the complexity of the knock down (i.e. access to the block, presence of asbestos).
Secondly, to determine the actual cost of the re-build. Depending on the size and features you wish to include in your new home’s design this can vary quite a bit, especially when you take into account the final fixtures and external finishes to complete your new home. With all our builder brands offering a large range of new-home designs from 2-bedroom homes and upwards you won’t be short for choice – meaning that you can still have a beautiful brand-new home without blowing your budget.
Finally, something you may not be aware of. You can potentially save quite a bit of money by knocking down and rebuilding over purchasing a new established home as you won’t be having to fork out an extra cost towards stamp duty. With this money you can use it to upgrade the selections at your MyChoice Design Studio appointment or furnish your home.
Can I demolish my home if I have a mortgage?
You sure can! With the assistance of financing from one of our expert mortgage consultants using one of the options listed below. We also recommend getting an evaluation on your current home and land as it is possible to loan (via a building and construction loan) up to 95% of the property value.
Use the equity of your existing land
Even if you want to demolish your existing home, it is still worth something! Your equity is calculated by looking at how much of your home you own, that is the difference between its market value with or without a dwelling attached to the land, and how much you owe on the mortgage.
Redraw on your current home loan
Does your current home loan provider offer a redraw facility? If so, you can use the redraw available in your current loan to potentially cover the cost of the knock down rebuild. If not, read below to see how we can help.
Refinance your home loan
Finally, refinancing your home loan to fund your knockdown rebuild is possible. We will work alongside you to review your current home loan and recommend additional options to refinance into something that better suits your requirements. By refinancing your loan, you will also be able to enjoy the benefits of greater flexibility and a wide range of features that may have not been previously available to you with your current lender.
Interested to find out more? Contact a member of our team today for a FREE financial health check!