Construction Finance

We know that construction projects can be challenging. That’s why we’re here to provide you with certainty and confidence every step of the way. Our team will be with you through every project milestone, to help you access the funds you need quickly and without hassle.

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Learn more

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Loan Size:

$3 mil – $40 mil

Max LVR:

65% of Project value

Lowest Rate:

8.00%

Term range:

up to 36 months

We understand every aspect of the construction process. From residential to retail, we finance all types of construction, including residential, commercial, industrial, as well as sub-divisions.

Unlike traditional loans, our construction loans feature no monthly repayments. Instead, interest and fees are capitalised into the loan. This means you can focus on your project without worrying about making interest repayments.

Our flexible funding structures provide you with all the financial support you need. Plus, our team has in-house construction expertise and will support you throughout the process. With us, there’ll be no surprises, no presales required, and you can sell upon completion to maximise your return on investment.

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We are proud to have assisted hundreds of people like you with the finance they need to move forward

If you need finance and fast please contact us today.

Frequently Asked Questions

What is construction finance?

Construction finance refers to the financial activities involved in funding and managing construction projects. It covers a wide range of financial aspects such as budgeting, financing, risk management, and accounting. The main goal of construction finance is to keep the project’s financial health intact and ensure that the project is completed within the allocated budget and timeframe. Financing for construction projects can come from various sources such as private equity, banks, government grants, and loans. Due to the complexity of construction financing, professional guidance is needed to make informed decisions that will lead to the project’s success. Construction finance is an essential component of the entire construction process and requires a deep understanding and careful management.

What are the benefits of construction finance?

The benefits of construction finance are numerous, including improved cash flow management, reduced project risks, and increased profitability. With the right financing, construction companies can maintain healthy cash reserves, avoid costly delays, and take advantage of new opportunities as they arise. In addition, construction finance enables companies to maintain positive relationships with their clients and subcontractors by ensuring timely payment and smooth project execution. Overall, construction finance is an essential tool for any construction business looking to thrive in a competitive industry.

How does construction finance work?

When it comes to financing a construction project, there are various steps involved to ensure that the project is adequately funded. Investors usually provide funds to cover expenses such as raw materials, labour, and equipment. However, before any money is disbursed, a feasibility study must be undertaken to determine if the project is lucrative enough to warrant the investment. Furthermore, loan agreements, cost estimates, construction schedules, and legal terms must be thoroughly examined and documented to reduce the risk posed to investors. In summary, construction finance works by investors providing funds for a project following a rigorous assessment of the project’s feasibility, risks, and profitability.

What are the eligibility requirements for construction finance?

Typically, lenders will look at various factors, such as the borrower’s credit score, income, and financial history, when determining eligibility. Other factors could include the size and scope of the construction project, the overall cost, and the property’s appraised value. Some lenders may also require a down payment or collateral. It’s important to do some research and pre-planning before applying for construction finance to increase the chances of approval. By understanding the eligibility requirements, borrowers can feel more confident in their ability to secure the necessary funds for their construction project.

What are the repayment terms for construction finance?

Construction finance generally offers flexible repayment options, including interest-only payments during construction and a final balloon payment at the end. These loans also often have fixed rates or adjustable rates based on the prime rate. It’s important to note that repayment terms will vary depending on the lender and project specifics. As with any financial decision, it’s important to carefully consider all options and consult with a trusted financial advisor before making any commitments.

What are the interest rates for construction finance?

Most lenders will offer a repayment term of up to 25 years for construction finance. It’s worth noting, however, that the longer the repayment term, the more interest you will likely pay over the life of the loan. Additionally, some lenders may require a short-term repayment plan or interest-only payments during the construction phase, with a larger repayment due upon completion. It’s essential to thoroughly review and understand the terms of the loan before signing on the dotted line to ensure you can comfortably repay the loan within the given terms.

How do I apply for construction finance?

Start by identifying your financing needs and determining the type of financing that best suits your project. It could be a traditional bank loan, construction loan, or a line of credit. Once you have decided what type of financing to seek, it’s time to gather and organise all the necessary documents such as business plans, financial statements, and project estimates. The lender will likely require detailed information about your project, including the costs, timeframe, and collateral. Finally, make sure to shop around and compare rates and terms from different lenders to find the best fit for your needs. By following these steps and being organised, you can give yourself the best chance of securing construction finance for your project.

What documentation do I need to apply for construction finance?

Most lenders will typically require a comprehensive business plan that outlines the project’s feasibility, including timelines, costs, and projected profits. You may also need to provide a detailed breakdown of the construction costs, including quotes from contractors or suppliers. Additionally, you must provide details about the land you plan to build on, including ownership documentation, zoning, and permits. Other documentation that may be required includes your company’s financial statements, tax returns, and your personal credit history. While the specifics can vary depending on the lender, having all of your paperwork in order can help you secure the financing you need to bring your construction project to life.

How long does it take to get approved for construction finance?

Typically, it takes anywhere between a few days to a few weeks to get approved for construction finance. However, the time it takes could be prolonged if there are issues with the application, such as incomplete information, a problematic credit score or insufficient collateral. The best way to ensure a quick approval is by having all your paperwork in check and addressing any concerns the lender may have promptly.

Are there any other fees associated with construction finance?

There may be additional fees beyond the initial loan amount. These fees can vary depending on the lender and the specific project, but some common ones include application fees, processing fees, appraisal fees, and inspection fees. It’s also worth noting that interest rates on construction loans tend to be higher than those for traditional mortgages, which can add to the overall cost of borrowing.