Construction Finance

We have Two Types of Products:

  1. COMMERCIAL  – Development/ Building Finance
  2. RESIDENTIAL – Home Renovation/ Building a New Home From Scratch.


AAA Constructions

Construction/ Development Finance.

‘AAA’ Commercial Mortgages has helped to finance thousands of projects over the last 28 years.The ideal developer is someone who has experience developing over many years.

A good developer does not necessarily have to be a builder, but a good builder is a necessary for a medium to large construction project as the risk in a construction loan is in the build itself being completed to a high and accurate standard.

Equity is important. Good lenders prefer the developer to own the land outright or have a small debt. That way they can fund the total construction cost.

Feasibility is the first thing AAA looks at in judging the quality of a project.

The feasibility must include a 5% p.a.contingency fee of the total construction cost.

Interest is capitalised for the term of the loan-  Normally these are up to 18 months.

An indication of the cost to the applicant of the capitalised interest is as follows;

If the loan is say $5,000,000 and the interest rate is 7.00% pa,  in one full year the interest would be $350,000. The full year interest divided by 65% gives us an understanding/ guide of the payable interest amount. This is $227,500. Note this is because interest is only payable on the draw down amount.

Today pre-sales are very important.

Most of the major banks require at least 100% debt cover sometimes even 140% – why? This assures the bank that 40% of purchasers who buy of the plan will not be able to complete the purchase when the project is completed.

Private lenders – normally require around 25% debt cover.

The off-the-plan purchasers must be arms length from the builder/ developer.

At ‘AAA’ we can put together the strategies that can mitigate the negatives of a lender’s credit department.

Mezzanine and Equity finance is also available for the larger projects.


“The road to success is always under construction”…

Product Information

Loan TypeInterest Only or Interest Capitalising for terms up to 24 months
Loan Amount$250,000- $100 million
Interest ratesVariable Rate (90 Day Bank Bill + Margin) – Call us for a quote!
SecurityEligible commercial & residential propert


Establishment FeesApplication, Valuation, QS and Legal fees may apply
Ongoing FeesProgressive drawing fee may apply



AAA Residential Construction

Renovating or Building a New Home from Scratch?

Our Rate 3.86%pa.

Most banks will charge you a higher rate during the construction period, whereas our bank charges the same amount for construction as it does for a normal home loan.

Product Information

Loan TypeInterest Only 1-5 years.
Loan Amount$150,000- $2.5 million
Interest ratesSAME AS YOUR HOME LOAN – 3.86% pa.

Click on The Get the Ball Rolling Link Below to make a time to chat to us about your specific construction needs.

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