We're doing it but its a transportable house so there's no progress payments - they want several thousand along the way for various things, and then we need to get finance for the rest.
As crazy as it seems, we're just giving the builder whatever they want out of our regular pay, *and* putting aside the money we need to pay the new mortgage when we eventually get finance. We don't earn a lot, which ironically means we have been forced to save a 40% deposit ... if we earnt more we'd need 5%. Its a bit interesting saving at the moment as I got cut off centrelink for 3 weeks and have only just got PPP back and still haven't got any FTA, and that money is supposed to be going towards the house.
We're probably going to keep the old house as a rental since it is so hard to time selling it so we don't need to move twice. Renting is a stupid idea as rent in this area is literally more than we would pay on all three mortgages.
we'll have no issue selling our current house, great location, ppl are literally camping out overnight on the steps of the landsales office when theres a land release, and our house is pretty unique. we could keep it as a rental but i dont want the stress really!
theres no way we can pay both at the same time, it would be virtually all of DFs weekly pay on the houses and not a cent left for us, even the interest only rates are still pretty expensive, guess we;ll have to scrap that one
Talk to a mortgage broker and see what options they have for you. You may be able to get a bridging loan or some such if you have enough equity and are selling the old house - either way there will be options out there. Generally with a construction loan you only need to make repayments on the part that is drawn down anyway, so it isn't the full cost that it would be once the house is completed.
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