Construction loans are usually set up by the lender initially as a standard variable loan. Throughout the construction of the dwelling, there are up to 5 progress drawdowns of the loan. The first draw down is when the slab is laid, through to final drawdown when the house is finished.

The purchase of the land can be a second loan, or combined with the construction loan.

Lenders have different policies and procedures for Construction Loans. The value of a Constructed Property is mostly seen as the value of the land + the value of the Fixed Price Building Contract. The lender will use this figure as a valuation as opposed to the actual proposed end valuation.

There are many options for Construction loans, each to suit a variety of circumstances.

If you are building a house and you require Construction Loans, we may be able to help. You may fully disclose your income or choose to self verify as you do not have complete financials or you are not able or do not wish to produce full financials.

When building a house you will need to plan carefully. Plan your finance alongside your cxonstruction.

There are differences between Construction Loans but generally you will require the following.

• Enough Funds to settle on your construction or
• Good current equity to secure your choice of construction loans or 5% deposit.
• Have a Fixed Price Building Contract.
• Are planning to build but have not started.

With this loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 15 to 30 years
• Obtain up to 80% Loan to Value Ratio without paying the Lenders’ Mortgage Insurance premium.
• Obtain up to 100% Loan to Value Ratio with Mortgage Insurance.
• Obtain a Low Doc Loan up to 80% Loan to Value Ratio (LVR).
• Choose from a variable interest rate or a fixed rate for 1, 3, or 5 years .
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Loan Funds presented in 3 to 5 stage payments toward settlement.
• Clean Credit History (minor Credit Defaults only).
• With this loan you may require a Fixed Price Building Contract.