Here are our tips for submitting Construction Loans:
- If your client is seeking funds to purchase or refinance a block of vacant land (or property) along with funds to cover the costs of construction, they will be able to complete this under one loan account.
- To nominate a construction account, the ABS purpose of the account must be one of the following codes:
- ABS-121: Constructing house by first mortgage
- ABS-123: Constructing other dwelling by first mortgage
- ABS-327: Finance for alterations and additions
- The construction account must be set to interest only repayments for a minimum of 2 years
- There needs to be at least one security with a status of “to be built”
- The total purchase or refinance amount will be disbursed upfront to your client at settlement, and the remaining funds for construction will be progressively drawn down.
- All other non-construction accounts in the facility can have their own ABS purpose, rate type and repayment type.
See our Construction Loan flyer for more information.