We can help you find the perfect property financing options. Whether you are looking to build multi
A 1-dwelling apartment complex or a skyscraper, we can help you find the most suitable property financing option for your needs.

So if you are looking for commercial or industrial development, residential property development or subdividing land, we can help you find the right people who can help with your financial needs. Property financing for development is a type of loan that can help you build two separate properties on one title.

Most bakers and lenders divide property financing into two parts for developers and both of these parts can have different approval processes and charges.

The two parts are:

  • Residential: Residential property development is considered small-scale development. This type of mortgage includes usual rates and charges and is also less risky than the two.
  • Commercial: Property development greater than 4-5 residential units is characterised as commercial property development. It can include anything from a skyscraper to an apartment complex. Commercial property financing is more complex and often include a higher interest rate.

How much can I borrow to develop a property?

A mortgage house is different from other property financings. We are masters at tailoring outcomes that suit your exact needs. We listen to your specific needs and understand your requirements beyond your desires so we could deliver you a package that strictly applies to you.

Property financing

Our specialists can also ensure a seamless process for our clients. We provide our clients with all the tools, knowledge and experience we have to make sure they are making the right choice. In terms of property financing, borrowing money can be a simple process to regular residential mortgages, especially if your property falls in the residential category.

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Banks and lenders tend to focus on higher risks associated with lending money and that’s why there can be a range of other things to consider. One such thing is LVR (Loan-to-Value Ratio).

What is LVR?

Loan-to-Value is the amount you can borrow in comparison to the value of the property you are buying. If you are planning to buy a property worth $1 million, the LVR value would be 80% and you will need to deposit 20%. If you have access to a higher deposit, you can give a higher LVR, which means you can negotiate a better interest rate.

Some regular residential mortgages can allow the LVR to be as high as 90%. Nevertheless, banks and lenders tend to be more strict. That means the LVR can be as low as 70% for larger developments and up to 80% for smaller developments. A few other variables also come into account when it comes to mortgage house and the amount you can borrow, including:

  • Life of the loan: How long are you looking to borrow the money for?
  • Extra funds: Have you got any extra funds as a contingency plan for your property development?
  • Loan size: The amount of money you want to borrow.
  • Feasibility: Is property development feasible? What is the position of the property in the market? Is it in demand?
  • Hard costs: Most residential development finance only covers the hard costs. Hard costs include materials and labour during the development process. Other costs such as legal and council fees, land clearing and design fees are to be included in a successful property financing application for development, before considering for development loan, you may need to consult with a development & Construction finance broker.
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Are construction home loans different?

If you are in the market for residential finance, you can find the process to be quite similar to a regular residential construction loan. Construction are great if you are looking to build a house to live in or as an opportunity.

What is stamp duty?

It is a levee on a transaction, which is charged on a range of financial transactions. It also includes when a property changes hand. If you are building a property, stamp duty is often only paid on the purchase of land, and not on the . In turn, you can save a lot of money buying the property.

Construction mortgages also offer a range of benefits. These benefits also apply to residential property developments. The key benefit is that the payment can be segregated, based on the range of agreed stages. That means a bank or lender will pay the builder only when those stages have been met.

As a property developer, that can save you money because you are only charged interest on the amount of money paid out at that time. Once the construction has finished, the mortgage will shift into a typical standard loan or commercial bridging loan.

Here are what the construction stages usually include:

  • The deposit: The deposit that is paid to the builder.
  • The foundation: This is when the base is poured.
  • The framing: When the frame of the house is finished.
  • The lock-up: When your home is made weatherproof.
  • The fixing: When the development is fitted out with the fixtures and all the other essentials such as electricals and appliances are done.
  • Completion: When the property is finally finished, the final payment will be made and the construction loan will become a standard loan.
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What kind of loan can I get?

Banks and lenders offer two kinds of home loan options, regardless of the kind of property you are buying: variable interest rate and fixed interest rate. In variable interest rate loans, the interest rate can increase or decrease over the life of the loan, according to the range of the internal and external variables.

In fixed interest rate loans, the interest rate remains stays the same as agreed. This means your loan interest remains immune to the changing interest rates for the agreed period.

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