Can You Get Fixed Rates on Construction Loans?
The conventional mortgage remains the standard for financing single-family home properties. It provides fixed interest rates to well-qualified borrowers. After the economic debacle of the 2000s in Australia, homebuyers and borrowers became weary of variable interest rates. Therefore, lenders developed new mortgage products and tools to help regain confidence in the interest rate option.
It’s possible to obtain fixed rates on construction loans. For example, Mortgage House offers the:
- Advantage 2 Years Fixed Investment
- Advantage 1 Year Fixed Investment
- Advantage 3 Years Fixed
You’ll notice that these home loans provide introductory fixed rates. Then, the interest rate changes based on the market rate. Construction loans remain a short-term financing solution. They last as long as the construction project. Construction projects take six to 12 months to complete. Thus, when the owner-builder or investor completes it, they must repay it in full. At this point, owner-builders can roll the loan into a mortgage. This becomes another opportunity to explore favourable home loan interest rates.
An owner-builder or investor who obtains the Mortgage House Advantage 1 Year loan can enjoy fixed rates during the construction of the property.
To dive deeper into your options, speak with our loan specialists. Construction loans require financial documentation. Plus, borrowers must turn in their plans for the project. Therefore, set aside a couple of extra weeks for the application process to fold out.
Fixed Rates on Construction Loans Conclusion
Mortgage House offers fixed rates on construction loans. To discuss them in more detail, contact our loan specialists.