What is a Land and Construction Loan and can I get one in Geelong?

Land and Construction loans in Geelong refer to the types of loans that allow you to make gradual payments to your builder, aligning with each stage of the construction schedule from the initial purchase of the land to the completion of the building. These loans are particularly popular in Geelong and surrounding regions, offering those looking to build or renovate notable benefits and advanced flexibility.

When you are building or renovating a property, it is very rare that you would pay the full construction amount all at once, hence, these loans exist to allow the payment to be completed progressively over the course of the project. It relieves financial stress while also assuring the project is done to satisfaction.

Once a stage of the construction process reaches fruition, a valuer will inspect the property to ensure it has met the set requirements and specifications, and essentially the quality of the job prior to the payment being made.

Land and construction loans are notably low interest, due to the fact that there are only calculated by the amount withdrawn rather than the full loan amount. The loans also have lower repayments, improved borrowing capacity, and are not overly difficult to obtain. If and when your proposed loan is approved by the lender in question, after you provide them with the necessary documentation, a deposit will be required to protect both you and the lender. This is typically around 5%.

For more information on land and construction loans and how to get one in Geelong and surrounding areas including in the Bellarine Peninsula and along the Surf Coast Shire, please contact our expert financial team on (03) 5243 3799 or visit us at 65 Gherinhap Street Geelong today. We can review your financial circumstance and assist you in determining what the most suitable option is for you. We look forward to hearing from you soon.