Understanding the Complexity of Construction Loans
Building your dream home can be very exciting and very overwhelming and daunting at the same time. It is a big project involving multiple parties including builders, lenders, solicitors, quantity surveyors and the council etc. With many parties and so many details involved in this complex process, many things can go wrong. An effective communication between parties liaised by your construction loan specialist is paramount to ensure a smooth process.
We Are Construction Loan Expert!
Our mortgage brokers at SUNNY FINANCE are specialists in construction loans. We are one of the reputable and trusted construction loan brokers in Melbourne. We have true knowledge and detailed insights into the game-changing financial decisions and help eliminate your stress by providing flexible construction loans tailored to your needs. We streamline the Construction Loan Application Process, assisting you with the complete loan application process and progress payments and keeping you informed at every stage.
We understand each lender processes loans in a particular manner. With a conventional loan for either purchasing an established home, newly built or an off the plan home, it’s often easy to have the loan submitted and approved in a timely manner. However, for a construction loan, the policy, process and set up can vary between different lenders. The knowledge, experience, and expertise our mortgage brokers have in construction loans will make a difference in this process. We can quickly work out which lenders can approve your loan and what is the best and suitable loan product to save you money in the long run. In addition to this, we can structure your loan in a way that ensures that your new home is built without the hassles or delays.
How Do Construction Loans Work?
To apply for a construction loan, a copy of the building contract/tender and the plans are required from all lenders. A valuation will be ordered by the lender to estimate the on-completion value of the property based on the building contract and plans provided. If you’re building an investment property, future rental income will also be assessed during the valuation, which can be used to service your loan.
Once your loan has been approved by a lender, a loan offer/contract will be issued for you to sign and return, just like with any other home loan.
You will need to pay your portion of funds to the builder first before the lender will release the rest of borrowed funds. When your builder is ready to begin receiving payments from the bank, they will need to provide additional documents, such as the final council-approved stamped plans, builder’s warranty insurance and invoices etc.
Ensure Each Stage is Complete Before Completing Drawdown Request
From laying down foundation to completion stage, there are several stages during the construction process. You may want to consider hiring a building consultant to inspect on your behalf so you can be sure that no corners have been cut. It’s also recommended that you have a walk-through yourself to ensure that the property is being built to specifications and to quality. This is particularly at the practical completion stage or last drawdown: don’t sign off on the last drawdown until you’re satisfied.
Personalised Mortgage Advice, Fast Loan Approvals, Call Now
Strategic financial approach is key to wealth maximisation. At Sunny Finance, our trusted construction loan broker provides insider’s information and helps you make informed decisions to optimise your financial situation. Upon assessing your financial goals, we speak with multiple lenders to keep you informed with the most up-to-date bank policies, loan products, interest rates and frame a roadmap to seamlessly achieve them. We leverage long-lasting relationships with trusted lenders to secure competitive interest rates and help you build wealth with minimised risk.
Give yourself an insider’s edge by choosing one of the best construction loan brokers in Melbourne. We go above and beyond to ensure clients are fully satisfied. Our loan specialists are committed to meet your financial goals by providing honest and tailored solutions.
Looking for expert advice for a detailed guide? Connect with our leading construction loan broker in Melbourne – we would love to help!