Monday, November 15, 2010

How to do the Splits?

Seeing we have to borrow money for something that doesn't yet exist; it makes it hard to organise finance. This is the plan....big thanks to our broker from Advanced Finance Solutions.

  • Borrow 95% of the land, pay the 5% deposit. For the time being, make it interest only.
  • Gain pre-approval for a figure for the construction. Land does't settle till June next year. Have this ready to go, this would be P and I.
  • Change current mortgage to interest only, no need to keep paying principle off that.
  • Later consolidate land and construction possibly. (Need to work that out later).

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