What Is the Average Construction Loan Length?
The construction loan length lasts enough to cover the project. It takes between six to 12 months to start and finish construction projects in Australia. Therefore, the length of the loan lasts the same amount. During construction, borrowers do not incur repayments. However, they can pay the interest incurred after every payment disbursement.
Construction loans turn into short-term financing solutions. Investors are more well-versed in how these products operate. Owner-builders often have the opportunity to roll their loan into a mortgage. Since the home will become their primary residence, lenders can work with the financing in many cases. At that point, the mortgage term stretches to 25 years.
Mortgage House is among the lenders that finance construction projects. Our team evaluates the application, building plans, and the market. If they find that the project can see completion as intended, they work to find loan terms that help the applicant.
Keep in mind that construction loans differ from single-family home mortgages. In addition to having a shorter length, lenders disburse the loan in increments.
To obtain this financing, fill out our Mortgage House application. Then, contact our loan specialists. They will cover the details with you during the process. Our team will outline potential loan terms, repayment schedules, and disbursement timeline.
In addition to financing construction loans, Mortgage House provides several online resources. Individuals can use our online calculators for free and estimate potential home loan rates.
Construction Loan Length Conclusion
The construction loan length lasts between six to 12 months. For more information about this loan product, contact our Mortgage House loan specialists.