We can help you find the right construction loan in Gippsland Victoria.
Our local Mortgage Broker in Sale will make finding the right construction loan in Gippsland easy.
Are you considering building or renovating your home? You will require a construction loan, which is a bit different from a traditional home loan.
A construction loan is based around the building process. Which means you as the borrower are able to balance when payments need to be made to the builder - as they make progress with the build. The payments are usually made at key stages of the build process and are known as progress payments.
How does a construction loan differ from a traditional home loan?
Unlike a traditional mortgage where you pay principal and interest, a construction loan is an interest-only loan until the building process is finalised, after which the loan reverts to a principal and interest loan.
Due to the loan being progressively drawn down during the build, you’ll only be charged interest on the funds used so far. That means that if you have a $500,000 loan and you drawn down $150,000, you’ll only be charged interest on that $150,000 amount. This can save you money during the build.
What is involved in the process of applying for a construction loan in Gippsland?
You will need to produce a copy of the building contract/tender and the building plans to apply for a construction loan in Gippsland. The lender will organise a valuation to determine the potential market value of the property as-if-complete.
Some lenders may require ongoing independent property valuation and inspections before paying each instalment. This is done to make sure that everything is on track and within budget. This is also a great safeguard for you - it allows you to hold your builders or contractors accountable - so they are not being paid for unsatisfactory or incomplete work.
Our Mortgage Broker in Sale will guide you through the construction loan process and help you understand all your options. At Mortgage Choice in Sale, we remove the hassle and stress out of finding the right construction loan from our wide range of lenders, by doing all the research, paperwork and follow-up for you.
Looking for a construction loan in Sale, Yarram, Traralgon, Warragul, Inverloch, Wonthaggi, Leongatha, Maffra, Bairnsdale, Lakes Entrance, Orbost or surrounds?
Mortgage Choice in Sale have you covered. Not only do we specialise in construction loans in the Gippsland area, but we can also help you with a range of other services including Mortgage Broking, Financial planning, Car loans, Property investment, Risk & general insurance, Business loans, Credit cards, Equipment finance & leasing.
Contact us today: Call Construction Loan Broker Dane Heinrich on (03) 5144 3265 or 0438 626 885.
Alternatively you can fill out the contact form at the bottom of this page or visit the office at 285 Raymond St, Sale VIC 3850 - near the clock tower!