Land & Construction

What is a construction loan?

A land and construction loan in australia is a type of loan that allows you to purchase land and build a new home on it. This type of loan is typically used by individuals who want to build a custom home or undertake a major renovation of an existing property.

When applying for a land and construction loan, you will typically need to provide a deposit, as well as evidence of your income and financial situation. You may also need to provide documentation related to your building plans, such as building permits and contractor quotes.

Interest rates for land and construction loans in australia can vary depending on a range of factors, including your credit score, the size of the loan, and the lender you choose. We at glow finance will compare different lenders and loan products to find the best option for your needs.

Construction Loan Melbourne

A construction loan most commonly has a ‘progressive drawdown’. This means you may receive instalments of the loan amount at various stages of construction, rather than receiving it all at once at the start. You generally only pay interest on the amount that is drawn down, as opposed to on the whole loan amount. Some lenders may also ask you to make contributions to the loan from your own savings, or to provide evidence that you will be able to afford the full loan amount.

A number of lenders offer construction loans that are interest-only during the construction period and then revert to a standard principal and interest loan once your home has been fully built.

Of course, a construction loan is just one potential source of funding for your project. You may also be eligible for government grants and concessions, particularly if you are a first home buyer, for example. Or, for renovators, there could be the option to refinance an existing mortgage or take out a personal loan. It could be a wise idea to seek professional financial advice when considering your options.

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Competitive

We can provide you with home loan options that are competitive and suit your financial needs. As independent brokers, we will always give you an unbiased opinion on the best home loan for your situation.

Flexible

We understand that you may not be able to visit us in the office during 9-5 Monday to Friday. This is why we offer flexible hours and are happy to schedule weekend appointments.

Personalised

We want to understand your financial situation so that we can personalise a solution that meets your budgetary requirements.

Online Application Process

We have online applications that we can help you complete from the comfort of your home.

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