Construction/Renovation Loan Broker in Melbourne

A construction or renovation loan is disbursed in stages, i.e., when you cross pre-set milestones within your project. For instance, if your project involves foundation, framing, and plumbing, you will receive the funds at the end of each stage. As they involve progress payments, the paperwork is often more complicated as compared to a traditional home loan.

The amount you can borrow will depend on the scope of your construction or renovation project. The lender will assess the specifics of your project, including cost estimates and plan to determine how much you can borrow. As your chosen construction/renovation mortgage brokers in Melbourne, we leverage our industry connections, perfect your loan application and help you secure the maximum possible funds.

Yes, before you apply for a construction or renovation loan, you will need to have a detailed plan. This includes –

• Quotes from contractors
• Architectural designs
• A project timeline, and more.

Lenders use these details to assess the scope of the work and determine an appropriate borrowing limit. So, be sure to have everything in order before you kickstart the application and approval process.

In most cases, you’ll make interest-only repayments during the construction phase. This keeps your repayments lower while you’re not yet living in the property or generating rental income. Once the project is finished, the loan may revert to principal and interest payments or be refinanced into a standard home loan. Our construction loan brokers will take you through all the specifics and help you make an informed decision.

Yes, you can refinance your construction loan once the project is complete and switch to a traditional home loan. The amount of the loan will depend upon the final value of the property. At Original Wealth, our construction and renovation loan brokers in Melbourne offer comprehensive refinancing assistance. We assess your situation and help you make optimum choices regarding your loan.

If your construction or renovation projects exceed the set budget, you might have to secure additional financing. Your existing lender might allow additional borrowing, but it will involve a reevaluation of the property and an updated project plan. Our brokers can help you handle such complications and adopt appropriate measures.

In the case of a construction loan, the loan-to-value ratio (LVR) falls anywhere between 70% to 90%. The exact rate will depend on the lender. Also, the LVR will be calculated based on the post-construction value of the property and not the current one. Based on your specific requirements, we can help you achieve the best possible terms. To learn more, connect with our renovation/construction loan brokers in Melbourne.

A construction loan generally involves multiple costs. It includes but is not limited to –

• Application fees
• Valuation fees
• Inspection fees (as they involve progress payments)
• Administrative fees

Our brokers will take you through all these costs in detail and help you have a clear picture before you proceed with the loan application.

As a construction loan broker, we specialise in offering comprehensive assistance. From research, loan comparison and selection to application and approval, we cover all steps. Beyond that, we also help you understand loan conditions, manage progress payments and ensure funds are released on time. At Original Wealth, we are dedicated to securing a seamless loan experience for you. Trust us to be at each step of your mortgage journey and make it as simple as possible.

If the construction or renovation is delayed, the lender may hold back funds until the issue is resolved, as funds are disbursed only once you achieve the set project milestones. So, you must stay on schedule and complete the project without any unnecessary halts. Also, any delays might increase the cost, so completing your construction/renovation project in one go is always a smart choice.