Construction Completion FinanceWhy use PMA to finance the completion of your construction:
- You’re developing a project and had a cost overrun
- You’re constructing up to four residential units or lots with a loan amount of up to $2M
- You’re looking for a loan secured by a Second Mortgage that has a First Mortgage provided by a traditional lender
Construction Completion Finance Loan Terms
Up to $2M
Up to 70% of the ‘as if complete’ value (max. LVR of 70% for major metro residential property, other security at lower LVRs)
2nd Mortgage (First Mortgage provided by a prime ‘traditional lender’ e.g. a bank)
Prepaid up to 12 Months + Extensions
Construction Completion Finance
Has your construction project been put on hold due to a lack of funds? Construction and construction completion loans are two types of loans that many banks and institutions are not financing right now. However, Private Mortgages Australia specialises in this particular type of finance to allow developers to get their construction projects over the line.
Construction completion finance is frequently used by property developers who do not want to bring in a funding partner and want to preserve their own equity for use elsewhere, such as capitalising on new opportunities as they arise.
Construction completion finance can often result in the full funding of the equity required to complete the project, the soft costs of the project, and any ongoing charges and taxes payable during the course of construction. Many successful property developers use construction completion finance once their projects have de-risked with DA and pre-sales achieved. They do this to settle the land, finalise design and approvals, fund sales and marketing costs to achieve pre-sales.
The benefits of construction completion finance include:
- Bring your project to market sooner
- Lower the amount of pre-sales required
- Precious cash is free to drive the rest of the developer’s pipeline
- You can actually decrease portfolio risk by increasing diversification and increasing your liquidity