23 Dec 2022

Can I Build a Granny Flat on My Property and Obtain Construction Mortgage Loan Finance?

Construction Loan and Mortgage

Homeowners who are researching the various loan options available to them to assist with financing home addition may want to learn if they can build a granny flat on their property and obtain a construction mortgage loan finance. Homeowners will need to obtain various elements, such as securing the proper permits and determining financing. 

Granny flat construction loans are highly recommended as second options for financing. The first option that homeowners should consider is leveraging the equity they have accrued through homeownership and making consistent repayments on their existing mortgage. Home equity line of credit loans provide better interest rates than construction home loans, therefore, homeowners should give this option a try before applying for a construction home loan to save money in the long run. However, if they do not own enough equity, the homeowner will need to go ahead and apply for a construction home loan. 

If a homeowner applies for a construction home loan, they will be required to provide various information to their mortgage provider, including building plans. The homeowners contractor will also be required to submit information, including building schedules, plans, and a contract outlining the costs. 

Homeowners who are interested in learning more about financing options for a granny flat addition to their home should reach out to the Mortgage House team of professional mortgage lenders for further information as well as specialized assistance and advice throughout the loan application process.

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