Advantages of buying a house on plan:

Buying a house on plan has some advantages. First of all, this type of house is a property that hasn't yet been built, but already has building plans approved and a building permit issued.
Then, in terms of price, there are also advantages. A house on the drawing board is usually sold at a lower price, as the builder receives the price in installments. As a rule, you'll pay less for a house under construction than for a brand new house in the same location.

Another advantage is that you're investing in a brand new property, without any marks of use or wear. It may also be possible to choose most of the finishes within the budgets already set. Some construction companies also allow small changes to the floor plan to meet the buyer's needs. Be aware, however, that all these details must be agreed and set out in writing to be safe.


How do home loans for buying a house on the drawing board work?

A home loan for buying a house on plan is a construction loan and, for this reason, has different characteristics to traditional loans. Once approved, the financing is made available in tranches as the work progresses. During the process, an expert will inspect the work so that the bank can release the loan installments.

With this type of loan, you'll be able to benefit from a capital grace period with a maximum term of between 24 and 36 months, meaning that during this period you'll only be paying interest, which provides some financial relief at the start of the process.

It may not be easy to get this type of loan approved. The difficulty lies in the fact that the risk associated with this type of business is greater, since the land and the project are in the name of the construction company at an early stage, only passing into the name of the client at the final stage.

You should check with several banks about the conditions for this type of mortgage before committing to buying the property. Remember that, as with traditional home loans, there is no such thing as 100% financing for construction loans. So, analyze the advantages and disadvantages of this type of deal and see if it makes sense given your family and financial context.





Source: Diário de Notícias
Legislação e Finanças