Amongst every type of home loan, housing under construction and new build loans stand out as both exciting and challenging – thus making them the perfect type of loan to speak to a mortgage adviser about!
Construction loans can involve complicated bank policies around valuations, contracts, interest-only periods and more. Our team of mortgage advisers have ample experience in navigating the ins and outs of construction loans and will be your trusted advisor throughout this process.
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Building a new build is stressful enough – let Laedan take care of your funding requirements!
Why Laedan
HIGHLY PERSONALISED SERVICE
You have a dedicated mortgage adviser to advise you through your new build process
CHEAPER RATES
Our team’s extensive networks and experience in the finance sector put us in a great position to secure rates significantly below market
SMARTER STRUCTURING
All of our mortgage advisers have significant industry experience. We know what’s possible and can look out for any traps. This is particularly relevant given the complexities of construction loans
OUR SERVICE IS USUALLY FREE
Our fees are paid by the banks for making their lives easier
Understanding deposit requirements
Our Process.
Pre-Approval
IN DEPTH DISCUSSION
The first step is talking with one of our mortgage advisers. Our team are highly experienced, and can typically give you an outline of what is possible from a single conversation.
COLLATE INFORMATION
We work with you to collect all relevant information needed in order to make a formal construction loan application.
SUBMIT APPLICATION TO LENDERS
Based on our understanding of your requirements, we will carefully select appropriate construction loan lenders (bank or non-bank as required) to submit your application to.
NEGOTIATE & SECURE APPROVAL
We will negotiate on your behalf to obtain the best rates and desired structure (including maximising interest-only flexibility), ultimately securing approval for your construction loan.
Post-Approval
ONBOARDING
We will oversee the financiers onboarding process for you, and answer any questions your lawyer may have with respect to the loan documentation/structure
MONITORING
We will monitor your construction loan going forward – particularly where progress payments are required. Your dedicated mortgage adviser will be available to discuss your loan at anytime.
Common Questions on
Construction Loans & New Build Financing
Is it harder to get a mortgage for a new build?
This depends on your personal circumstances. Securing a mortgage for a new build can involve greater documentation and valuation requirements for lenders, however gaining approval can be just as straightforward as a standard home loan.
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In fact, construction loans can actually be easier for some given that many lenders only have a 5% deposit requirement for new build loans.
What percent deposit is required for new build loans?
Depending on the lender and your personal circumstances, it is possible to put down a deposit of only 5% when financing new builds
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Ask our team about how this can work for you.
Can you get 100% financing on a construction loan?
Generally speaking, no. Many lenders have a minimum deposit requirement of at least 5% of the construction loan. While you cannot a secure a construction loan with no cash or assets to put towards the purchase, it is a possibility if you have a guarantor that is willing to provide a guarantee supported by a property with equity. This can add an additional layer of complexity in securing your loan.