Well, this one can be a little bit complicated having to work out the right steps to move out of your current home that needs to be sold first and moving to a new home that needs 3 to 6 months to build. Also, there is the problem of having to rent a place to stay and then the cost of moving which means you will have to spend twice and not forgetting all the stress that comes with organizing every step.
Relocation loans can be a good choice to help you plan for a shift into your new home without necessarily having to move out of your current home first. The lender will work out the entire cost that is involved in buying the new home and factor in the existing home debt during the period the home is being constructed. The lender will also calculate the estimate of your home and what end debt will be left after the home has been sold. The difference (capitalizing loan income) will then be paid out after the sale of the home.
The capitalizing and end debt will then be set up as two loan amounts. The capitalizing debt will just sit there and gain interests and the end debt will be paid as a normal loan. The proceeds from the capitalizing debt will go toward the capitalizing debt which will leave you with just the end debt. Get this topic explained further in details, Mark is the man regarding mortgages broking in sydney near you.