Approval time for ANZ Construction Loan

Hi there,

Just wanted to ask if anyone out there has recently applied for a construction loan with ANZ and roughly how long it can take for approval?

Itching to get building, all finances are 100% Just hoping it won’t take forever to approve!

 

My experience with ANZ has been far better in 2019 vs last half of 2018 - they've got their act together now, so lending decisions been made fairly quickly with them so far (relatively small sample size).

In general, a week or so, subject to documentation/your situation. Construction loans can often take a bit more time (extra documentation, progress payment check, val can take a bit longer, etc).

 

Done few refinances with ANZ and no issues what so ever!..

Not sure on construction side tbh..

 

A valuation for a construction loan might take about 1-4 days longer than a regular valuation. You've probably got to allow for a bit of extra time in putting the paperwork together as well, because there's a bit more too it than a regular purchase.

I'd suggest that an extra 2-5 days needs to be allowed to get everything done.

 

I am in the process of doing my first subdivision to build at the back of my IP in seaford Melbourne
I was waiting for the dust to settle from the RC before seeking conditional approval
My current mortgage is with CUA.on a fixed rate expires 2020
What will i need to approach the banks ie ANZ etc
What should i look out for
Will they lend 90% of $350k
Thanks

 

@frank22 I wouldn't suggest that ANZ is an appropriate lender for this situation. They may only lend 70% of the property value when it comes to construction of this nature.

You'd be better served by speaking with a broker regarding the most appropriate lender to your specific needs.

 

Do you need to have council approved plans in place to apply for a construction loan?

 

Yes. You also need a fixed price building contract and all the documentation that goes with that.

Essentially the bank (and the valuer) need to understand what the end result will be. You can get a pre-approval without these things, but they are needed for the final approval.

 

Thanks Peter, that makes sense

 

Interestingly ANZ have announced a return to 90% LVR and 10 years IO this morning - effective March 25. This is at first glance, good news...until you consider how devastating this will be to borrowing capacity when they ( and other lenders) assess the debt at 20 years P&I . Still, if you have oodles of borrowing capacity and can afford to sacrifice some in order to get 10 years IO, it will be very handy

 

My broker is trying to secure a loan for $360k as a cashout instead of a construction loan
.The loan is an investment loan with 5 years interest free .
I then use the proceeds to make progress payments towards construction
My concern is he advised me NOT to pay the builder directly, but to transfer it into another account and then make the payment
He says its fine the lender does not need to know it is for construction
I am concerned the lender will decide to withdraw the loan half way into construction
Am i concerning myself for nothing or should i be worried
Thanks

 

Excuse my ignorance, the potential lender is ANZ,
What do you mean by "security of the land is not theirs'
The current house and land is worth approximately $800k and i am subdividing and adding a unit at the back

 

Maybe the cinder doesn’t do construction? Or Maybe trying to avoid the new net of offset upfront rules? Seems a lot of trouble to go to though, just do a construction loan.

 

Interest Free? Can i get it too please?

 

ANZ are offering 10 yrs interest free

 

The lender did a desk top valuation and they valued my block about 20% below market value
I wanted $360k thinking the house and property 752sqm is worth $800k ,owing 240k mortgage
Now i can only get $265 cash out
I decided to pay for plans permits myself and go for a,construction loan
My broker says the lender will lend more for eg if the contract is $300k because i am adding value to the block ,they will value it at $1 million instead of $635j and can get the $360k i am seeking
I need your input
Thanks

 

This is my first project at developing
Finance together with design and construction is an integral part of this process
The broker may be right with his advice or wrong
Just wondering if the experts out there can give me affirmation on this
Will the lender now lend me more than the contract because i have a proposed property on the one block??