During the initial purchase of land and construction, a construction loan operates as an interest-only loan. Individual drawdown payments occur on completion of each major construction goal. This continues at intervals as the project continues until completion.
Our Latest Construction
Loan Interest Rates
Interest Rates Rates vary depending on Loan to Value Ratio (LVR)
By their very nature, projects needing construction loans will generate no profit until the completion and occupation of the project. Unless of course land value increases.
Although it seems painfully absurd, many banks and other large lending institutions refuse to finance construction loans because a property under construction does not create income. Here at Quantum Finance Australia, we believe our borrowers should not need to struggle through such regulations. We are of the opinion that a potentially profitable endeavour deserves funding.
How Construction Loans Work
The first thing for you to know is that the construction loan process is structured and calculated differently than other
loans. When you begin the application process, we assign a consulting expert to your loan. He or she will work side by side
with you and be available to answer questions and give wise counsel.
Before we can calculate the loan amount, we will put together a budget.
Your construction loan budget is made up of several components.
- Soft Costs
- Hard Costs
- Closing Costs
- Inspection Fees
- The Pay Off Amount for the Lot
Do I Need a Professional
Contractor To Get a Loan?
The owner-builder situation is one of the many areas where dealing with a private funding source makes your life easier. Many banks and large lending companies feel this arrangement adds an element of chance to a venture they already view as risky. However unfounded, borrowers may find they are rejected or significantly limited in their loan amounts.
For example, a bank might offer an owner-builder mortgage with the amount restricted to 60 per cent of the total land value. We are interested in helping and not hindering your building progress. Therefore, we have the ability to focus on more tangible costs such as estimated costs of material and labour as opposed to making you navigate a maze of restrictions and paperwork.
Because we are not biased towards any bank or lender and large mortgage companies, we can fund construction loans for numerous kinds of building projects such as:
- New residential- single family homes
- New residential- multiple family units
- New residential- apartment or high-rise complex
- Renovate residential (all types)
- New commercial development
- Commercial property renovation
- Government sponsored land development construction projects
Securing the Right Finance
At Quantum Finance Australia we will secure the loan for your construction work by doing the following:
- Research and analyse the building project looking at the details from the start through completion
- Work with funding sources to craft a loan that maximises returns on investments for all parties involved.
Our Offer To You
At Quantum Finance Australia, we bring our experience and expertise to the table for every transaction we complete. Additionally, we are interested in forming stable relationships with our borrowers because we see our clients as more than loan numbers. Furthermore, we are proud to offer our clients the following:
- Expedient loan decisions, often within 24 hours
- The ability to offer customised and flexible credit policies
- Access to your funding quickly after your loan is finalised.
- A thorough understanding of construction loans