30 May 2022
How Much Can I Borrow for a Mortgage?
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If you have recently purchased a piece of land, building a small housing development can maximise your profits. However, if you need a loan to construct the development, it can be challenging to find the right lender.
Banks and other lenders provide property development loans to allow you to start construction on your property. Residential loans are for smaller developments up to four units. Commercial loans are for larger developments with more than four units. Unless you are a land developer, you will most likely be applying for a residential property development loan.
These loans are structured similarly to construction loans. With residential development loans, your lender will release your funds at the end of each of these construction stages:
Any unused balance is released to your contractor after your project is completed.
Banks and other lenders view residential developments as low-risk, meaning they have looser criteria and better features, including:
If you are trying to secure a residential property development loan, Mortgage House and its team of brokers can help. We know all the ins and outs of the home loan business, and we can find you the most competitive loan available.