If you are planning to build or renovate a property, a construction loan enables you to pay your builder in instalments as the building progresses.
The lending institution may lend up to 100% of the building costs once they are happy with the future value of the property and your ability to service the new loan.
While most lenders offer construction loans, it is extremely important that your loan is with the right lender for the type of property that you are building. There is a lot more to factor in when setting up a construction loan besides just choosing a lender with a cheap rate. The lender is effectively your building partner and you need to make sure that the progress draws are released by the lender on time and in full when required.
Intelligent Finance has arranged many construction loans. The lenders we have used and the structures we set up have differed with each client, as it is vital to tailor the loan to suit each client’s financial position and the type of property they are constructing.
We deal with over 40 lenders and can advise, arrange and project manage construction finance for your new construction / renovation.