Looking for Construction Loan for Investment Property - Company Structure

Hi Guys,

First time poster, but have been reading and learning from the forum for a while.

My partner and I have a block of land in an estate approx 60km north of Melbourne that we are looking to build an investment property on. We own the land in a company structure. The land is titled and ready to build on.

We currently have the land financed with Bendigo Bank (no broker) but their products are limited and currently only offer 25 year loans for business lending, which we are classified as. Loan is principle and interest, 4.99% rate. We borrowed 80% and had no LMI. Not sure about their construction loans - they have been slow to provide details.

We are now looking at building a 4bed, 2 bath, 2 car house on the block as an investment property. Looking at holding the property long term - 20+ years. Block is 470m2. Looking to keep build cost less than $300K. Have got a few quotes already.

We are now looking for a good broker that can help us find the right loan/product to suit our needs. We are prepared to refinance the land with another lender to get a good construction loan product. We are both self employed (we own our businesses in two companies), have 2+ years of financials and tax returns etc.

Any recommendations for brokers or products from the regulars on the forum?

Thanks

 

I am doing a construction loan now for a company client for residential housing.
It is pretty standard and most brokers could give it a crack.
(i am not accepting new clients atm).

 

Thanks Terry - good to know most brokers should be able to handle this - Bendigo Bank have struggled with the land loan, not looking forward to how they would cope with the construction loan!

 

Just because its under a company entity doesn't mean that it should be structured as a commercial loan. You need to use a lender that handles company entities via residential lending and in all honestly most lenders can handle this under their residential arm.

Westpac is the big one that does it through their business banking arm (as a residential product) but plenty of other options.

Its is the number of dwellings you are building that generally dictates commercial vs residential but since its just one dwelling you have plenty of options.

You may just be limited by other things like valuations (which you can order upfront with plenty of lenders) and servicing and if you need a lender that relies on one years financials versus average of the 2 years, et.c