Construction loans | Mortgage Broker in Deebing Heights, Ripley, and Ripley South
Start your home loan journey today
Why use a construction loan?
Personal loans are a great way to secure a large sum of money; however, they do come with some unforeseen restrictions that make them unsuitable for all projects/goals. Namely, when you have a project that involves building, renovating, or repairing, you may need a more flexible funding solution to accommodate the longer timelines that come with such projects.
Construction loans are a loan option that are designed to accommodate a project plan, offering funding more flexibly. This means that if your project has multiple stages planned across a long period of time, you can save on your interest repayments as a result.
Although construction loans are extremely flexible, they aren’t always suited towards every project or budget. It’s important to always seek advice from your trusted broker before entering a construction loan to ensure that your finances are in order, that you’ve received the best loan offer possible, and that the loan structure is appropriate for your upcoming project.
You can connect with Ipswich’s premier broker, Jeff Wright, to discuss your project and how best to fund it. Get in today on 0416 425 928.
What are the pros and cons of construction loans?
Construction loans are designed to accommodate a range of projects, from those that span months at a time to those that require some unique funding timelines. However, knowing what the strengths and weaknesses of construction loans are is an essential step to assess if a construction loan is suitable for your upcoming project.
Due to the flexibility of funding that construction loans offer, you can save on your interest repayment. For example, let’s imagine you have a $30,000 construction loan that is divided into three repayments of $10,000 over three months. Your interest is only applied to the amount that has been borrowed at any given time, meaning your first monthly repayment’s interest only applies to the $10,000 lent and so forth.
However, with this in mind, it’s important to note that because of this flexibility, construction loans come with higher interest rates than traditional loans. As such, weighing up the benefits and overall costs of personal loans and construction loans becomes a complicated process that requires some intimate knowledge of your projects’ timeline, costs, and the loan market.
Luckily, you don’t have to figure it all out yourself. Mortgage brokers are here to help break down your available loan options and present you with a range of options that focus on your project goals and available finances.
Remove the legwork out of choosing a loan so you can focus on the project at hand. Jeff Wright is your local Mortgage Choice broker who is well-versed in construction loans and how best to utilise them. Start the conversation with Jeff today and get cracking on your project in no time!
Ring Jeff on 0416 425 928 and start the conversation on how best to fund your upcoming construction projects.
As an experienced mortgage broker across Ipswich, Jeff is available to help with a large variety of topics, including:
