Construction Loan Product

Construction Loans Australia – Providing the best construction loan rates up to $10 million

  • Max Loan to Value Ratio (LVR) of up to 70%

  • No pre-sales required, allowing projects to start construction sooner;

  • Increased LVR to 75% if a few pre-sales in place

  • Maximum Loan to Cost Ratio of 90%, resulting in lower equity contribution from the developer

  • 9.75% cost of funds with a 1% Loan Management Fee;

  • 2.75% establishment fee, paid as:

  • $10,000 on application

  • $15,000 upon acceptance of our finance offer (this covers valuation, QS and loan documentation costs)

  • Balance paid from the loan settlement

  • In most cases the mortgage security will be limited to the subject property, this means we don’t tie up all of your assets

  • More flexible on choices of Valuation firm

  • Streamlined credit process, most loans we have issued an approval in 1-2 days

  • Credit process is focused on the property / project, rather than full interrogation of the sponsor’s ability to repay or service the loan

  • Easy progress claims – timeframe for payment from providing QS report and borrower declaration is typically 24-48 hours.


Example of Project Saving

  • 20 units @ $450,000 so $9mil GR, extra funding cost is $170,000, or $8,500/unit, so let’s say you had pre-sales budgeted at 3% upfront and 3% on completion, by starting without pre-sales you would save the upfront marketing commissions on 10 units, which at 3% is $13,500 per unit, so a $135,000 project saving.

  • Or looking at construction, say it was $200,000 per unit cost to build, even at 4% cost increases per annum that is $4,000 per unit cost increase for the 6 month delay to secure pre-sales, or $80,000 to the project.


Case Study

  • 10 Apartments

  • 75%LVR / 92%LCR

  • Developer only required to contribute

  • $270,000 or 8% LCR leaving $425,000 available for investment.