29 Mar 2022

What Is the Average Interest Rate on a Construction Loan?

Average Interest Rate and Construction Loans

In Australia, the average interest rate for construction loans has a range. It sits between 2.5% to 5%. Finding the average rate depends on where you look. Some industry insiders place the rate at 2.5%. Others believe that it sits at 4.5%. Plus, rates fluctuate daily. Then, banks and lending institutions participate in financial transactions with each other after-hours too. These transactions also impact daily interest rates.

Mortgage House offers several loan products to owner-builders and investors who seek to build a new home or multi-unit structures. Some Mortgage House construction loan options include:

  • Advantage 3 Years Fixed
  • Advantage 2 Years Fixed Special
  • Advantage 1 Year Fixed

Our Mortgage House Advantage 1 Year Fixed carries an interest rate of 2.79%. Then, our Advantage 2 Years Fixed Special carries a rate of 3.14% Finally, you’ll find that our Advantage 3 Years Fixed has a rate of 3.44%. 

The final interest rates that applicants obtain depend on several factors. For example, the financial position of the applicant plays a role. Those who require a lower loan-to-value ratio can obtain a better interest rate. The less risk a lender takes on, the better the interest rate becomes. 

Our loan specialists at Mortgage House have several tools that help them evaluate applications promptly. Plus, they can find competitive loan terms for most applicants including home loan rates.  

Average Interest Rate and Construction Loans Conclusion

The average interest rate for construction loans ranges between 2.5% to 5%. It depends on several factors. To find your interest rate for construction project financing, contact Mortgage House. Our loan specialists will evaluate your application efficiently.

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