How Do I Get a Bank Construction Loan?
Banks remain conservative in their lending practices. Nonetheless, the big Australian banks hold the bulk of outstanding mortgages. Banks have responsibilities to their banking clients. Since banks accept deposits and maintain savings accounts, the institutions must meet a liquidity level daily. They cannot issue risky loans consistently since it can impact their liquidity.
Obtaining a bank construction loan is not much different than obtaining it from a non-bank lender such as Mortgage House.
All lenders require:
- Proof of land ownership
- Financial documentation
- Building plans
- Building timeline
- Construction contract
In addition, banks will require that applicants have a credit score of at least 680 and a deposit toward the loan. Construction loans double as a short-term financing solution. The life of the loan lasts until the construction projection reaches completion. Then, it becomes due. Thus, an application must remain prepared to repay it.
Mortgage House competes with banks. We can offer competitive loan terms to well-qualified owner-builders and investors. Those who do not qualify for bank construction loans can apply with Mortgage House.
To start the process, we encourage borrowers to prepare their finances and building plans. The more organised the details, the more favourable their financial position can become.
Mortgage House provides several online resources to homebuyers, investors, and owner-builders with no strings attached. You can also refinance a home loan.
Bank Construction Loan Conclusion
Mortgage House competes with banks; we also provide favourable terms to owner-builders and investors who cannot obtain a bank construction loan. Contact our loan specialists to start exploring your options today.