There was a time when it was not possible to get a low doc loan for construction projects.
Although, some major lenders are now more relaxed with their lending criteria.
You could secure low doc finance for your next project.
You may be able lend up to 80% of the cost of the construction work and land value. There are specific lending criteria:
If you do not meet these criteria, you may still be able to get a development loan providing that you have a significant deposit.
To find out more about low doc construction loans please enquire online or call us on 1300 55 10 45.
You can usually borrow the smaller of 80% of the project cost or 70% of the value on completion.
Banks do not usually approve low doc loans for developers because they have an unpredictable income and there are often long delays between completing their projects are receiving payment.
For this reason there are specialist loans for developers. These loans have an established exit date and capitalised interest and this is to avert the need for repayments.
The majority of banks will only offer you a loan for your project if you are building with a licensed builder insured with Home Warranty Insurance (HWI) or equivalent.
Banks are seeking the safety provided by an official building contract covered by insurance.
Generally the banks will not charge you a higher interest rate for a construction loan. Low doc or not, most banks will offer you the same rate as for purchasing property.
You don’t have to supply documents like tax returns, financial declarations or notices of assessment, however you do have to show the bank an income statement and the all the specifics of your project.
Generally you require the following construction documents; building contract and construction tender; stamped council approved plans (or draft); specifications and schedule of finishes; construction certificate (NSW) or building permit (VIC); builder’s insurance; and builder’s risk insurance.
If you provide us your builder’s details then we can organise it all for you.
Let us help you with you low doc construction loan! Call us on 1300 55 10 45 or enquire online. Our skilled mortgage brokers will get back to you to discuss your circumstances.
These loans can be used for developing the following:
You should contact us roughly four weeks before commencing construction.
It sometimes takes a few weeks to get your application back. Often the best lenders are the most popular.
Call and speak to one of our Customer Care team on 1300 55 10 45.