Construction loans- Progress payment stages

A construction loan applies if your either;

Studio apartment? small units? With an aging population and increase in living cost; it’s a fact of life that an increasing number of people are considering living and buying smaller apartments especially ones located near the CBD hub which offers lifestyle and good rental yield.

For many years now, the banks has always consider any apartment under the magically 50 square meters to be considered as “unique or unacceptable “. Fast forward into 2015- many banks are changing their policy to suit the everyday investors/home owners and are now accepting units as small as 20 squ meters ( case by case).

1. Square meters of living space only

  • 50 squ meters ———– Up to 95% LVR ( 5% deposit)
  • 45 squ meters ———– Up to 95% LVR ( 5% deposit)
  • 40 squ meters————Up to 90% LVR ( 10% deposit)
  • 35 squ meters————Up to 80% LVR( 20% deposit)
  • 30 squ meters ———–Up to 75% LVR ( 25% deposit)
  • 20-30 squ meters —— Case by Case up generally 50-75% LVR ( 50-25% deposit)

2. Total square meters INCLUSIVE of balcony, car space, court yard and storage cage

  • 50 squ meters ———– Up to 95% LVR ( 5% deposit)
  • 45 squ meters ———– Up to 80% LVR ( 20% deposit)
  • 40 squ meters———— Up to 75% LVR ( 25% deposit)
  • 35 squ meters———— Up to 65% LVR( 35% deposit)
  • 30 squ meters ———— Up to 50% LVR ( 50% deposit)
  • 20-30 squ meters —— Up to Case by Case depending on how much is living space VS external space.

Note:

  • 1. No student accommodation or service apartment for the above LVR ( for student and service accommodation contact us for suitable lenders and LVR).
  • 2. Must be self contained- Own kitchen, laundry and toilet.
  • 3. These LVR are location and building dependent as well; meaning there are certain buildings and postcode that the bank may blacklist.
  • 4. If you have equity in another property OR your happy to cross securitize your properties; you could borrow potentially borrow up to 110% of the property value at any size.