Financing Pat and Kate Lambie's Dream Home at Seaton

When embarking on a new build, one of the biggest concerns for landowners is how to secure the funding for the project. For Pat and Kate Lambie, building their dream home at Seaton is an exciting journey, but it also comes with some important financial decisions. Let's take a look at how they plan to finance the construction of their new coastal haven.

1. Cash or Savings: Not an Option for the Lambies

For many, the simplest option is to fund a build through cash savings. However, this is not the case for the Lambies, who are seeking alternative financing options for their Seaton property.

2. Building Loan: A Common Financing Choice

One of the most popular options for funding a home build is through a building loan. To apply for this type of loan, certain criteria must be met, including:

• A building contract between the owner and builder.
• Approval of the building plans (expected in January 2023).
• The preparation of a bill of quantities and finishing schedule.

Once these elements are in place, payments are typically made in stages throughout the build, with interest-only payments during the construction phase. Upon completion, the loan generally converts to a traditional mortgage, with both interest and capital repayments kicking in.

While Pat and Kate haven’t yet selected a builder, they are making progress with the paperwork. The building plan approval is expected to be finalized by January 2023, and the bill of quantities is expected shortly.

3. Refinancing: A Potential Option for Home Financing

Another option for funding a new build is refinancing an existing property loan. In the case of the Lambies, this involves extending an existing loan facility on a property that has already been paid off. The bank will reassess the property value and, if they’re satisfied with the serviceability (i.e., the ability to make repayments), they may offer a new loan that includes the cost of building the new home.

The Lambies are planning to pursue refinancing and are hopeful that the bank will approve their request. The aim is to have the extended loan facility in place by February 2023, when they hope to break ground on their new home.

4. A Perfect Match: Building Costs and Financing

Ideally, the loan extension through refinancing will align perfectly with the costs of building the new home. However, the Lambies are still awaiting final building quotes, so they are carefully monitoring the costs to ensure everything aligns.

The journey of building a home comes with plenty of moving parts, and Pat and Kate are excited to see their dream home take shape. Stay tuned for more updates on their journey, as they continue to navigate the financial and logistical steps toward bringing their Seaton home to life.

Key Takeaways:

• The Lambies are exploring building loans and refinancing options to fund their home at Seaton.
• They’re currently awaiting building plan approval and final quotes before making final financing decisions.
• Refinancing their existing property loan is their primary financing strategy, with hopes to secure funds by February 2023.

Want to Follow the Lambies’ Journey to Seaton?

Stay updated on their progress and learn more about building a home on the beautiful North Coast of KZN. Keep an eye out for more updates on their journey to bring their dream home to life!