Melbourne Construction loanS
Melbourne
Construction Loans
The new build mortgage market is complex requiring expert knowledge and a specialist approach. Every moment of your new home building experience should be hassle and stress free and that includes your finance.
Mynt Financial is a brokerage that is dedicated to providing Brokers that specialise in new homes. Mynt Brokers have a detailed understanding of the many products and schemes available to you so that we get it right the first time and help secure your new home.
Home builders choose to partner with Mynt due to our access to knowledge of the new build market and understanding of the unique customer journey this space presents.
Download our guide
A construction loan is structured very differently to a mortgage for an existing property. Download our ultimate construction loan guide for the full explainer.
Rather than making one payment when your property settles there are typically 6x progress payments.
Loan repayments while your building
While your loan is progressively drawn with each progress payment to your builder, you’ll be required to make interest payments to cover the interest that’s accruing on your loan. Naturally, the accrued interest will increase during your construction period because your outstanding loan balance increases as the lender continues to release money to pay your builder’s invoices. Expected repayments during construction
While the loan is drawing down
You pay the interest amount that has accrued on the loan. The interest accrued is calculated on your loan’s interest rate and the owing balance on your loan.
While your last progress payment is paid
A final interest payment will need to be made on the same day your last progress payment is made. Your contract loan term officially starts from this day.
Your loan repayments after your last progress payment is made:
The loan switches to principle and interest payment at this time if that is what you chose when applying for the loan. If you chose interest only repayments, interest payments on the loan balance will now apply for the nominated period.
