29 Mar 2022

Is It Easier to Get a Construction Loan if You Own the Land?

Own the Land and Construction Loans

Construction projects have two phases, purchasing the land and completing the building. Some owner-builders and investors attempt to finance both phases of the project. That strategy poses a challenge. The per hectare cost in Australia continues to rise. Although the land still sees competitive prices. Nonetheless, large projects require an investment in the land too. 

If you own the land before you apply for a construction loan, it makes things easier. First, it’s one less significant investment from the lender. Next, you can use the equity in the land as collateral for the loan. Lenders still explore the complete situation before rendering a decision. However, land equity helps owner-builders and investors.

Mortgage House is among the lenders that issue construction loans. We bring innovation to the lending market. Thus, we fund loans for applicants who already own the land in many cases. Our team also funds construction financing for owner-builders and investors who seek to purchase the land too.

We ask applicants to fill out the appropriate paperwork and to provide their plans. Then, our loan specialists can evaluate the complete application. Once they reach a conclusion, they can offer competitive loan terms in most cases. Plus, the team outlines the disbursement timeline and other factors such as repayments. 

If you’re in the market for a car too, try our Mortgage House car loan calculator.

Own the Land and Construction Loans Conclusion

If you own the land where you want to build a new home or multi-unit structure, it’s easier to obtain a construction loan. Mortgage House loan specialists can provide more information. Contact our team today.

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