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Advest Construction Loan

 

Product Guide

This loan allows you to build your dream home within a six month period from the finalization of the purchase of your land and commencement of construction. Once construction is completed the loan automatically converts into a Principle and Interest loan.

Purpose For the construction of a property.

Minimum Loan Amount $50,000.00

Maximum Loan Amount $1,000,000.00 (subject to mortgage insurers)

Loan To Value Ratio up to 95% for Sydney and Melbourne metropolitan areas
up to 90% for regional areas

Term 30 years – 6 months for construction and then converts into a standard P&I loan

Interest Rates variable during construction period, then with the option to fix all or part of the loan for periods of 1-5 years

Multiple Accounts these are available once the loan converts into a standard P&I loan

Interest Only Automatic for the 6-month construction period only

Repayment Type Interest only during the construction period, then converts to a Principle and Interest loan

Repayment Options Repayments are fortnightly or monthly by direct debit from a nominated bank account.

Additional Parameters Some specific terms are applied to this loan including:
• The construction must be completed within a 6 month period – when construction phase has been completed the loan will convert to a standard loan for the remaining term
• This loan can work in conjunction with a land only loan, which is used to purchase your land. In total the period from purchase of land to end of construction may be up to 30 months – 24 months for land and 6 months for construction.
• Not suitable for owner-builders
• The borrower must contribute all their funds at settlement
• First Home Owners Grant funds may not be used as the required deposit (5%)

Lenders Mortgage Insurance Paid by Funder where LVR is up to 80% for loan amounts up to $2m

Drawdowns There are 5 drawdowns for a construction loan. These generally are:
• Slab down – 15% of the total cost construction
• Frame up – 25% of total cost construction
• External brickwork complete – 20% of construction cost
• Lock up stage – 20% of construction cost
• Practical completion – 20% of total construction cost
An industry standard building contract is required before the initial drawdown. For building contract under $250k progress inspections are required on first and final drawdowns. For building contracts over $250k, progress inspections are required for all drawdowns. In all cases drawdown requests must be signed by borrowers for each drawdown.


Fees Please refer to our Fees and Charges

 


Interest Rate 6.95%

Comparison Rate 6.97% pa#

based upon a $300,000

mortgage over 30 years

Comparison Rate Schedule




Key Features

• Internet and phone access for enquiry only
• 6 monthly statement for each account
• No account management fees
• Weekly, fortnightly or monthly repayment options
• Salary crediting
• Bpay in
• Deposit card
• Additional repayments can be made
• Lo Doc option – please refer to Lo Doc profile



Phone us on:

1300 851 353

or

request a consultant

 

Important notice: # Comparison rate is calculated based on a loan of $300,000 over 30 years based on monthly repayments. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. A Comparison Rate Schedule is available.

This information has been prepared without taking into account the objectives, financial situation or needs of any particular individual. For this reason any individual should, before acting on this information, seek appropriate professional, financial and taxation advice. Applications for any Advest Loan is subject to Advest’s normal loan approval process. Full terms and conditions will be included in any loan offer. Fees and charges are payable.

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