Construction lending is a highly specialized area within the finance industry. Mistakes can occur because there are so many people involved from lenders, builders, contractors, solicitors, accountants, quantity surveyors and the council. As experienced construction loan specialist, My Property & Finance will ensure you are in the safest hands, helping you avoid errors that can result in costly delays and disappointment.
How can we help?
- Finding a expert to help you: Construction finance is quite complicated and is considered a specialised area in the finance industry. Our specialist brokers have an intricate understanding of the construction process, ensuring that your application has the best possible chance of success.
- Establishing your budget and project feasibility: Our assessment can help determine 1) whether or not you can qualify for construction finance, 2) the amount of funds you can potentially borrow and 3) whether or not your project is financially feasible with regards to lender policy.
- Selecting the right lender: Trying to establish which lender will provide you the most appropriate loan, that will maximize your borrowing power can be overwhelming & time-consuming. At My Property & Finance we will help you maximize your funding potential and secure the most flexible, highest LVR loan appropriate to your needs.
- Low valuations: Valuers generally take a conservative approach to valuations which can have a negative impact on the overall funding capabilities of your project. Lenders usually take into account your land value plus the lesser of either your construction contract price or constructions costs, not necessarily the true end value. By offering additional supporting documents, including comparable sales, to the valuer, we increase the likelihood that your valuation will reflect the contract price of the construction. We can also obtain upfront valuations, so if there is a low valuation you will know it before you commit to an application through that lender.
- Time-frames for initial drawdown: If you have a separate construction loan it will have a initial drawdown period specifically outlined within the loan approval. We will make sure you are aware of this time-frame and will try to build in a contingency plan if for some reason you are unable to meet the lenders requirements.
How much can I borrow?
Maximum Loan to Value Ratio (LVR): Up to 95% LVR plus Lender’s Mortgage Insurance (LMI) is available on land and/or construction loans*.
*Disclaimer – Your full financial situation would need to be reviewed prior to acceptance of any product or offer.
Contact My Property & Finance today and one of our friendly construction finance specialists will walk you through your construction loan options and answer any questions you may have.