How do construction loans work?
You’ve found a great piece of land in Leppington or Caddens and are working through the numbers – and the sales designs from the builders. For customers purchasing land and ready to build or who hold existing land, mortgages up to 95% of valuation are available – and you can capitalize LMI (lender’s mortgage insurance) up to 97%. You will need the following: a signed fixed price builder’s contract, a tentative on completion (TOC) valuation, builder’s construction insurance, a stamped council-approved building plan and a quantity surveyor report if your construction costs are greater than $800k. Construction must commence within 3 years and during this time, your loan will be interest only. For more information on construction stages, valuations and progress draws, contact us today.