Building Loan

Frequently Asked Questions

Why should I use a Mortgage Broker?

A mortgage broker helps by offering access to various lenders, personalised guidance, and expertise in navigating the complexities of home loans. They save you time by handling research and paperwork, provide tailored advice based on your financial situation, and often negotiate better terms with lenders. Their support extends beyond securing the loan, assisting with refinancing and ongoing advice, making the process smoother and more convenient for you.

What are construction loans?

Construction loans are specifically designed to finance the building or renovation of a property. These loans differ from traditional home loans as they are usually drawn down in stages to cover the various phases of construction, such as purchasing land, building the structure, and final completion.

How do construction loans work?

Construction loans typically involve an initial approval phase, during which funds are released in stages or 'draws' as the construction progresses. The borrower pays interest only on the amount drawn, and once construction is completed, the loan may convert to a traditional mortgage or require refinancing.

What factors affect eligibility for construction loans?

Eligibility for construction loans involves factors such as creditworthiness, income, the project's feasibility, builder's experience, detailed project plans, cost estimates, and the property's appraised value. Lenders carefully assess these factors before approving a construction loan.

What are the advantages of construction loans?

Construction loans offer advantages such as flexibility in financing custom-built properties, paying interest-only during the construction phase, and potentially accessing lower interest rates compared to other forms of financing. They also allow borrowers to oversee the building process and ensure the property meets their specifications.

Terms & Conditions

Disclaimer

ACN 660 600 251. Authorised Credit Representative number 503408. Australian Credit License number 384704. Part of the Finance Brokers Association of Australia Limited (FBAA) and licensed to give you credit advice. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.

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