Construction Loans - Finance & Mortgage Brokers

Construction Loans

At JFS Financial Strategists, we're Mortgage Brokers helping clients Australia-wide fund their new build or renovation with a Construction Loan

5.0

from 144 Reviews

Header Photo for JFS Financial Strategists

We'll help you fund your new build or renovation

JFS Financial Strategists is your trusted partner for all your construction loan needs in Strathfield, Sydney's Inner West, and across Australia. Whether you’re planning a major home renovation, buying off the plan, or embarking on a new build, we can help you access construction loan options from banks and lenders across Australia. Understanding the unique financing requirements of construction projects, we offer a comprehensive service to simplify the process and ensure you secure the best deal for your needs.

When applying for a construction loan, it's essential to understand the various stages of the project and how the financing works. One of the main features of a construction loan is the progressive drawdown facility. This means you receive funds in instalments as your project reaches specific construction milestones. For instance, payments are made to plumbers, electricians, and your registered builder as needed. This progressive payment schedule ensures you only charge interest on the amount drawn down, helping you manage costs effectively.

Interest rates on construction loans can vary based on factors like loan amount and the lender's terms. Our streamlined application process allows you to efficiently navigate these options. At JFS Financial Strategists, we ensure you get competitive interest rates and flexible terms tailored to your project's requirements. We also provide interest-only repayment options during the construction phase, easing your financial burden until your project is complete.

A crucial aspect of securing a construction loan is meeting council regulations and obtaining necessary permits. You'll need to have council plans and a development application in place before receiving funds. Additionally, it's essential to consider any council restrictions that could impact your project. Our experts at JFS Financial Strategists can guide you through this process, ensuring all legal requirements are met so you can focus on making your dream project a reality.

When you make a plan for your project, it’s vital to account for Out of Contract Items not included in your initial budget. These could include additional payments for unforeseen expenses or upgrades. Our team helps you prepare for these eventualities, ensuring your project stays within budget and on schedule.

Another important factor to consider is the 'as if complete' valuation. This valuation assesses the expected value of your property once construction is finished and is crucial for determining your borrowing capacity. Lenders use this valuation to decide the maximum loan amount they’re willing to offer. At JFS Financial Strategists, we work with experienced valuers to provide accurate assessments, giving you confidence in your financing plan.

If you're looking at demolishing an existing property or building on suitable land, our team can assist with every detail from finding the ideal location to working within your price range. We understand that commencing building within a set period from the Disclosure Date is essential to avoid additional costs such as a Progressive Drawing Fee.

For those interested in major home renovations or home improvement loans, JFS Financial Strategists offers tailored solutions to meet your unique needs. Whether it’s upgrading your kitchen or adding an extension, we help you secure funding that aligns with your goals while navigating any council restrictions.

In summary, JFS Financial Strategists is dedicated to helping you access construction loan options from banks and lenders across Australia. Our expertise ensures you get favourable interest rates and a streamlined application process, with interest-only repayment options available during construction. We assist with every stage of your project, from obtaining permits to managing progress payments and ensuring compliance with council regulations. Let us help you turn your construction dreams into reality—contact JFS Financial Strategists today to begin your journey.

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Our Recent Reviews

Jamie is a professional broker who helped us with getting or loan documents for our next purchase he is very dedicated to his job and always try to resolve any difficulties many thanks Jamie

John Ta

Very professional! Quick response and always give us the best competitive interest rate. Highly recommended!

Emily Nguyen

I can’t recommend Jamie highly enough! From start to finish, he made the entire process of securing a mortgage for our new property seamless and stress-free. Jamie was incredibly knowledgeable, professional, and always available to answer any questions we had along the way. What stood out the most was his dedication to finding the best rates and terms for us while ensuring we understood every step. They went above and beyond to simplify what can often feel like an overwhelming process, providing clear guidance and constant updates. Thanks to his expertise and personalized approach, we were able to close on our first IP without any hiccups. Thank you for making this milestone such a positive experience!

Praveen Sagar Cheerla

Jamie and his team was honestly efficient in helping us dealing with my father first investment property. They were knowledgeable and supportive throughout the whole process. He made sure we understand every steps of the way and was always available to answer many of our questions. Thank you guys. Highly recommended!

Helen Lam

Frequently Asked Questions

How Much Deposit Should I Have?

Most lenders will require a 20% deposit for home loans and processing fees. That’s why we suggest having at least a 20% deposit so we can better negotiate the rates for your loan.

Otherwise, we can look for other solutions such as a Family Guarantee or government grants such as the First Home Loan Deposit Scheme (FHLDS).

How Much Will Getting a Home Cost?

Here is the breakdown of costs in processing or buying a new home. Note that your real estate broker may have more or fewer requirements and fees depending on several factors.

- Home loan deposit (we recommend a 20% deposit if you don’t have government schemes in place)
- Legal fees
- Lenders’ Mortgage Insurance (LMI), although we can help you negotiate for an 80% LVR with no LMI for home loans depending on your financial position.
- Lender’s Establishment Fees for Specialist Loans

Furthermore, your local council may require you to pay the following fees:

- Government Registration & Transfer Fees
- Due Diligence Fees (pest inspection, strata report, etc.)

Aside from legal and lending fees, you should also note labour costs, moving, and furnishing your new home. Don’t forget about living expenses and your monthly mortgage repayments.

What if I Can’t Make the 20% Loan Deposit?

Usually, you only need to have a minimum deposit of about 5-10% of the property value to purchase it.

But if you still don’t have that amount, we recommend opting for a family guarantee, especially if your parents have considerable equity in their property. Otherwise, paying for LMI should help you get finance as long as you and the house you want to purchase are eligible.

Why Do I Need a Mortgage Broker for Property Investing?

Having a time-tested and proven mortgage broker can help you:

- Thoroughly assess and determine your borrowing capacity.
- Understanding what documents you need to prepare when buying a property
- Make sure you have enough equity and set an appropriate property budget.
- Develop a long-term and sustainable financing strategy
- Establish a sustainable and reliable financing strategy
- Take you through different partner specialists (solicitors, tax and depreciation experts, mortgage brokers, and buyer agents)

Property investors should also walk away with an improved loan portfolio with our help at JFS Financial Strategists.

How Can I Tell if Property Investing Works for Me?

Before venturing into property investing, make sure you have:

- Extra cash flow after deducting living expenses and outstanding debts
- Saved enough equity or deposit in a property.

Besides, remember that investing incurs varying risks. So we recommend having an investor’s mindset and trying to mitigate the risks of investing by looking into what you will earn in an investment property.

That means going out of your way to make several enquiries just to ensure what you’re venturing into is right for you.

What is LMI or Lenders’ Mortgage Insurance?

When applying for a home loan, you should hear the term LMI or Lenders’ Mortgage Insurance from your bank or broker.

You pay your insurance provider a one-time fee when applying for loans above a specified Loan to Value Ratio (LVR).

LMI is required when the bank or lender is exposed to higher risk on your loan. What happens when you’re borrowing more for less deposit.

If you default on the loan and the bank sells the property at a loss, the LMI insurer will reimburse your lender for the loss. On your end, that means you can borrow more and purchase higher-valued properties. The only con is that you need to pay an LMI fee which increases along with LVR and loan amount.

Who Are We?

At JFS Financial Strategists we are big about saving you time and money so you could spend more time on doing what you love. We take over the project from start to finish, through research, reviewing the fine prints, negotiations with lenders and their credit managers, comparing rates and fees to achieve your goals.

How Much Amount Can I Borrow?

The amount and Loan to Value Ratio (LVR) you can borrow will depend on your capacity to repay the loan. In other words, your net income is gross income minus tax and other expenses you need to make.

Contact

North Strathfield, NSW

0401 855 096

JFS Advisory Pty Ltd ABN: 19 623 513 119. Credit Representative #427424 is authorised under Australian Credit License #387025

Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

Cashback Offers: From time to time, we may run campaigns that include cashback in the form of cash gift cards. The gift card would be set to 25% of the total agreed dollar value, and distributed half yearly within the first two years. Cards will not be issued if loan facilities were discharged within the first 24 months.