Property Construction Loans

Are you looking at building your dream home, an investment property, or renovating or extending your current home?  Most people are not able to pay for the entire construction upfront, and obtaining finance can be exceedingly complicated. At Financial Scope Melbourne, we can help you sort through the process, and help you gain construction finance that will suit your every need.

Construction Loan Information

Construction loans (or construction finance) are very different from a normal home loan, and it’s important that you’re kept well informed before making any decisions. Here are a few specifics that you may need to be aware of:

• Flexibility of loans means you can slowly drip feed your funds over a period of 12 months while your house is built.
• A construction loan most commonly has a progressive drawn-down. As the loan is being progressively drawn down interest and repayments will only be charged/calculated on the funds used.
• There are a wide range of clauses and features that apply through different lenders loan policies, and it pays to seek the guidance of professionals.
• Some lenders need to see valuations at different stages of the development before they agree to release the funds, and in most cases, a 20-25% deposit is required.
• Owner Builders may find it difficult to obtain adequate and affordable construction finance, as lenders will often prefer qualified builders completing the work.
• All construction plans and list of materials will need to be provided to the lender

Finding the Right Construction Loan

With the help of Financial Scope Melbourne’s professional brokers, you have the flexibility to choose from a range of construction loan features that best suit you, including:

• Interest only during construction
• Available for owner-occupier and investor
• Loan to Value Ratio (LVR) up to 90%

Construction loans can come with competitive interest rates and low-deposit options but if you select the wrong lender this could end up costing you a lot more than it needed to. Speak to Financial Scope Melbourne for experienced advice, industry-leading loan options, and professional service, to help navigate the world of construction financing.