# Construction

## Is Your Construction Loan for Commercial or Residential Purpose?

### 1. COMMERCIAL

• Feasibility is the first thing ‘AAA’ looks at in judging the quality of a project.
• The feasibility must include a  5-10%p.a.contingency fee of the total construction cost.
• Today pre-sales are very important.
• Majority of major banks require at least 100% debt cover.
• Private lenders – normally require from 0-25% debt cover. (Rates from 7.5%-12.5% p.a.)
• The off-the-plan purchasers must be arm’s length from the builder/ developer
• At ‘AAA’ we can put together the strategies that can mitigate the negatives of a lender’s credit department.
##### Remember:

“The road to success is always under construction”…

Product Information

 Loan Type Interest Only or Interest Capitalising for terms up to 24 months Loan Amount $250,000-$200 million Interest rates Variable Rate (90 Day Bank Bill + Margin) – Call us for a quote! Security Eligible commercial & Residential property

 Establishment Fees Application, Valuation, QS and Legal fees may apply Ongoing Fees Progressive drawing fee may apply

## 2. RESIDENTIAL

### 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 Type Interest Only 1-5 years. Loan Amount $150,000-$2.5 million Interest rates SAME AS YOUR HOME LOAN – 3.99% pa.