Whether building, renovating or developing, Lifestyle Loans provides expert guidance on funding your next project. Having assisted many clients over the years, we’ve got the right experience to help you access a range of funding options and turn your dream build into a reality.
Frequently Asked Questions
A construction loan allows you to pay for each stage of the build without having to come up with all the funds upfront. The benefit is that you only pay interest on the money you have used rather than the full amount you will be borrowing overall. This type of loan can be used when you are building a property or undertaking major renovations. Fill out this form to understand how much you can borrow to build your next home.
Construction loans work differently to traditional home loans:
Progress Payments: You don’t borrow the whole construction amount from the lender up front. Instead, you simply draw down progress payments as the build progresses.
Interest Only: During the construction phase, you only pay interest on the amount of funds you have drawn down. Once the construction is complete, the payments will convert to Principal & Interest.
Deposit: You will still need to pay a deposit like a normal loan, the lender will only offer an LVR within their normal limits. If the LVR exceeds 80% you will need to pay LMI as well, just like a loan for an established property.
Understanding how construction loans work can save you time and money. Contact us today to discover which lender and loan product is right for your next build.
When it comes to financing your development, understanding the credit policy and lending rules, how developments are valued by lenders and whether your development falls into residential or commercial lending are all crucial factors.
We can help you:
Understand the feasibility of your proposal
Finding the right lender and loan terms
Our lending specialists have the knowledge and experience to assist in making your development a success.
