We offer Low doc construction loans at our standard low doc loan rate. The lender will lend up to 80% of the value of the construction cost. You will need to provide a construction contract with a registered builder. Full specifications bust be stated in the contract for the purposes of valuation.
The loan will be drawn down progressively as the house is constructed. After each stage of construction you will need to submit a progress claim to the lender for that stage. For example, once the slab is completed you can submit a claim for the cost of the invoice sent to you by the builder.
With all construction contracts your deposit must be used to pay the initial stages before the lender provides the remaining funds.
During construction the borrower will need to pay the interest incurred on the loan. Once construction is complete the loan will revert to principal and interest or interest only for a certain time if required.