Construction Loans
At Star Finance Group, we're mortgage brokers dedicated to assisting clients across Australia in funding their new build or renovation with a construction loan.
At Star Finance Group, we're mortgage brokers dedicated to assisting clients across Australia in funding their new build or renovation with a construction loan.
A construction loan is a short-term loan used to finance the construction or renovation of a property. Unlike traditional mortgages, which are typically based on the property's current value, construction loans provide funds in stages as the project progresses.
Draws: Construction loans disburse funds in stages or "draws" as construction milestones are met.
Interest: During construction, you may pay interest only on the amount drawn. Once construction is complete, the loan may convert to a traditional mortgage.
Credit and Income: Lenders typically require a good credit score (usually 680 or higher) and proof of sufficient income to repay the loan.
Down Payment: Expect to make a substantial down payment, often 20-25% of the project's total cost.
Construction Plans: Detailed construction plans and cost estimates are essential for loan approval.
Builder and Plans: Provide detailed plans and specifications from a licensed contractor or builder.
Financial Documentation: Submit financial documents, including income verification, tax returns, and bank statements.
Appraisal: Lenders may require an appraisal to verify the project's value and feasibility.
Building your dream home or renovating an existing property doesn’t have to be a distant goal. At Start Finance Group, we offer tailored construction loans designed to make your vision a reality faster and more affordably. Whether you’re a first-time buyer looking to customize your space, upgrading to your next home, or realizing your long-awaited dream home, our construction loans provide the financial flexibility and support you need.
