While looking to invest in an investment property, building a home of your dream, or while renovating your current home, most people find it difficult to pay for the entire construction upfront. This can lead to obtaining finance exceedingly complicated.
At Vic Loan Express in Melbourne, we can help you sort through the process, and help you gain construction loan that will suit your every need.
What You Need to Know About Construction Loans in Melbourne
Construction Loan is quite different from other home loan options, and that is why it is important that you are kept well informed before making further decisions.
Here are some facts that you must be aware of:
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.
• Flexibility of loans means you can slowly drip feed your funds over a period of 12 months while your house is built.
• 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.
• Owner Builders may find it difficult to obtain adequate and affordable construction finance, as lenders will often prefer qualified builders completing the work.
• 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.
• All construction plans and list of materials will need to be provided to the lender
Find the Right Construction Loan with Vic Loans Express
With the help of Vic Loan Express’ professional brokers, you get the flexibility to choose from a wide range of construction loan features that you may find most suitable.
The features include:
• Interest only during construction
• Available for owner-occupier and investor
• Loan to Value Ratio (LVR) up to 90%
You may find many construction loan lenders offering competitive interest rates and low-deposit options, but without an experienced construction loan broker, you may go for an inappropriate lender and this could end up costing you a huge sum of money.
That is why feel free to speak with our expert loan advisors at Vic Loans Express for experienced advice, industry-leading loan options, and professional service. We help you navigate the world of construction financing at ease.
Contact us at 03 9390 0030