Construction loans enable you to deliver your project on a cost to complete basis. Nominating the right lender for your construction loan is vital in delivering a successful project, and we are experts at structuring the right loan to suit your project.
Typical loan parameters for Construction Loans
Loan amounts from $2,000,000 – >$200,000,000
Facility limits:
Banks – up to 60% LVR and 65% in some cases
Non Banks – up to 70% LVR
Maximum Loan to Cost (LTC) Ratio is 80%
Pricing:
Banks from 1.50% margin and 1.50% line fee
Non Banks from 2.50% margin and 2.50% line fee
Mortgage Funds from 9.00% with no line fees
No or minimal pre-sale requirements available for selective projects
Locations: all metropolitan locations and major regional and sub-regional locations
Common Types of Construction Loans:
Owner-Builder Loans: For individuals managing their own construction projects, covering materials and labor costs.
Fixed-Price Construction Loans: Suitable for projects with a fixed building contract, offering clear repayment terms and predictable costs.
Cost-Plus Construction Loans: For projects where costs may vary, allowing flexibility to accommodate changes during construction.
Interest-Only Loans: Payments cover only the interest during the construction phase, with principal repayments starting after completion.
Turnkey Construction Loans: Covers both construction and land purchase costs, ideal for all-in-one project packages.
Split Construction Loans: Separates the land and construction loans for projects requiring phased financing.
Commercial Construction Loans: Tailored for developers building commercial properties like offices, retail spaces, or industrial facilities.
Key Features:
Progressive Drawdowns: Funds released at key milestones (e.g., foundation, framing, lock-up).
Flexible Terms: Loan structures vary to match the project's size, duration, and purpose.
Interest Rates: Often variable, with rates dependent on the lender and project risk profile.