With a conventional loan, it’s often easy to have the loan submitted and approved in a timely manner. For a construction loan, this system is often more complicated, due to the complexity of the construction process.
When you apply for a loan, the lender will need a copy of the building contract and the plans. They’ll ask their valuer to estimate the on-completion value of the property and will assess your loan on the lesser of the land price plus cost of construction or the on-completion value. Once your loan has been approved, the lender will issue a loan offer for you to sign and return, just like with any other home loan. When your builder is ready to begin receiving payments from the bank they’ll need to provide additional documents, such as the final council approved plans, builders insurance & drawdown schedule.
Our mortgage brokers are specialists in construction loans. We can quickly work out which lenders can approve your loan. In addition to this, we can structure your loan in a way that ensures that your new home is built without the hassles. Call us on (02) 4627 5511 or complete the form on the right to get in touch.