Are you builder, property developer or owner-builder looking to build a home, granny flat, renovate or knock down and rebuild? We can help. Finance And Property Specialists (FPS) can help you to access a range of construction loans which can finance the building of your new home, renovations or other building projects you may be planning or considering.
What is a construction loan?
A construction loan is a specialised loan for builders or renovators which provides the finance to cover the cost of the construction during the building process. These types of loans can be a straight up construction loan or split finance loan which incorporate both a home and construction loan component.
Construction loans are different type of loans than a typical mortgage type loan. Construction loans are unique in that they are made as progress payments during stages of the building
Benefits of a construction loan
Construction loans offer homeowners, builders and developers protection against having to accept finance that isn’t right for their situation. These loans also offer the benefit of releasing funds as progress payments.
Progress payments protects the borrower as a sort of financial insurance. For example if any construction work is defective or has not been completed to specifications, the builder or contractor will not get paid until the work is satisfactory and or to agreed terms.
Some of the great benefits construction loan offer are:
- Less interest
- Short Term
- Split loan options
- Building project plan based
- Drawdown facilities
- Allows for payment variations in building costs and construction times
Another added benefit of a construction loan is that interest is only charged on the total amount of loan funds drawn down during the term of the loan. If the whole available loan amount is not all used, the borrower won’t have to pay the interest on the whole loan amount.
Construction loan specialists
Speak with one of the team at FPS to find out what kind of loan you qualify for. Construction loans can be complicated and not all mortgage brokers or lenders have construction loan expertise. FPS will advise you and ensure you understand all of your loan options in detail to help you to choose the best loan for you situation.