Construction Loans Gold Coast
Looking to build your dream home or investment property and need a construction loan?
Construction loans, whether you’re undertaking large scale renovations or a new build, can come with a raft of special conditions and requirements which can seem overwhelming.
At Aquallis Finance, we have extensive experience in securing construction loans and managing the process from start to end, leaving the finance side of your build stress free. We match you with the right construction loan and help you to structure your finances to save on fees and payments during construction.
What Is A Construction Loan?
Construction loans, as their name implies, are specifically designed to provide the required finances for construction work. These building loans or renovation loans release funding in line with the progress of the work being carried out rather than being available as a lump sum.
There are strict conditions that must be met at each stage before the lender will release additional funding through ‘progressive drawdowns’.
Construction/Building Loans and Their Benefits
As standard loans provide you with all the money up-front, you may be wondering what are the benefits of having a construction loan that pays in instalments. There are quite a few, such as:
You only pay interest on the money you’ve paid to the builder rather than the entire loan amount. This can be incredibly helpful at keeping your cash flow moving and costs down.
Many construction loans offer an interest-only repayment schedule during the build to further reduce costs.
Receiving money in instalments from a pre-agreed amount can help you stay on track with your build and your budget.
Your stamp duty may be cheaper than when buying an existing home.
You are protected from poor workmanship. As the lender will inspect each stage of the build before approving more funding, any problems that are found can be dealt with at the time. This avoids costly repairs later down the line.
Are Construction Loans Hard to Get?
No, not necessarily, though the application process and approval criteria differ quite a bit from a standard home loan.
You’ll need to submit council approved plans including building specifications, a fixed-price contract with your chosen builder and insurance documentation. This will be in addition to the standard paperwork relating to your finances and employment.
The lender will want to complete an appraisal of the property based on its estimated value at the time of completion as well as your deposit. The higher the deposit you can provide or collateral security, the better your chances of being approved, as this represents less risk to the lender.
Keep in mind that as there is no physical asset for surety against the loan, many lenders will be very strict with their approval criteria. Engaging help from an experienced mortgage broker like Aquallis Finance can help to ensure your construction loan is approved without delay. We also have experience in assisting with finance for owner builder loans.
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Construction Home Loans Gold Coast
Aquallis Finance has years of experience in navigating construction loans for property owners on the Gold Coast. We have access to loans from over 40 lenders, including major banks, and can streamline your lending process. We understand the ins and outs of getting a construction home loan approved in-depth and can ensure you receive the most competitive loan conditions and interest rate.
Our skilled brokers look beyond simply getting the loan approved but further into the best way to structure the loan for your financial benefit. At Aquallis Finance our goal is to help you achieve your dreams of building or renovating without the stress, hassle or paperwork involved in applying for the loan yourself.
Contact the experts at Aquallis Finance today on 0450 277 554 to learn more about construction loans on the Gold Coast.