Construction loans are financial products designed specifically for individuals who are building a new home or undertaking major renovations. These loans differ from traditional mortgages as they provide funds in stages throughout the construction process, ensuring that you have the necessary capital at each phase of the project. At our BRM Financial, we offer a comprehensive range of construction loan services to assist you in realising your dream home. Our expert team will guide you through the loan application process, help you navigate complex construction loan terms, and provide tailored solutions that align with your specific needs and budget. Whether you are a first-time builder or an experienced developer, we are here to support you every step of the way, ensuring a seamless construction loan experience. Trust us to make your construction project a success.
Determine a realistic budget for your construction project, including all costs.
Explore different construction loan options available from various lenders.
Choose a reputable and experienced builder who has a track record of successful projects.
Carefully review the terms and conditions of the construction loan, including draw schedules, interest-only periods, and any penalties or fees
Ensure proper insurance coverage for the construction project, including builder's risk insurance.
Account for unexpected costs and potential project delays by setting aside a contingency fund.
We take pride in our track record of assisting numerous clients with their construction loans. Our experienced team of Christchurch mortgage advisers understands the unique challenges and intricacies involved in securing financing for construction projects. From guiding clients through the application process to providing tailored solutions that align with their financial goals, we have successfully helped individuals and families turn their construction dreams into reality. Our dedication to delivering exceptional service and our deep understanding of the construction loan landscape make us the trusted choice for borrowers seeking reliable and personalized assistance. Count on us to navigate the complexities of construction lending and provide you with the support you need to achieve your construction goals.
We have financed several investment properties and I know he’s saved me a lot of stress, time and money. If you are looking for a great mortgage broker who listens and does what he says, Brads your man
Phil Cramner
Brad has been out mortgage ‘go to’ guy for 10 years now and over that time he’s proven himself to be a super knowledgeable and attentive
David and Fiona Burrows
Thank you so much for all your help and guidance, working with you was a fun and professional experience, and we refer all our friends to BRM for mortgage advice.
James and Donna Wadlow
Got questions about your construction loan? Check out our frequently asked questions below!
A construction loan is a specialized type of loan designed to finance the construction or renovation of a property. Unlike traditional mortgages, construction loans provide funds in stages throughout the construction process, allowing borrowers to draw funds as needed to cover expenses.
Construction loans typically have a draw schedule, where funds are released in increments at various stages of construction. These stages may include foundation construction, framing, roof on and completion. Interest is charged only on the amount drawn, rather than the total loan amount.
Lenders typically have specific requirements for construction loans. These may include a detailed construction plan with specs, a licensed and insured builder, and a suitable deposit. Each lender may have different criteria, so it's essential to consult with a mortgage broker to understand the specific requirements.
TYes, construction loans can be used for major renovations or significant additions to existing properties. The loan amount would be based on the projected cost of the renovation or addition. It's important to provide detailed plans and estimates to the lender when applying for a construction loan for renovations.
Yes, once construction is complete, you can typically convert the construction loan into a permanent mortgage. This process is known as "construction-to-permanent" financing. It allows you to transition seamlessly from the construction phase to the long-term financing of your completed property. The terms and conditions for the permanent mortgage will be determined during the application process and may differ from the construction loan terms.
At BRM Financial we specialise in a variety of mortgages, including new home, construction mortgages, first-time buyer mortgages, investment mortgages, and refinance mortgages. Let us know which type of mortgage you are interested in and we will work with you to find the best option for your needs.
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