Is Your Construction Loan for Commercial or Residential Purpose?
COMMERCIAL – Development/ Building Finance
RESIDENTIAL – Home Renovation/ Building a New Home From Scratch.
- 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.
“The road to success is always under construction”…
|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|
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.
|Loan Type||Interest Only 1-5 years.|
|Loan Amount||$150,000- $2.5 million|
|Interest rates||SAME AS YOUR HOME LOAN – 3.99% pa.|