Have you been told you can’t have a fixed rate construction loan? This is simply not the case as there are now lenders that will allow you to have a fixed rate construction loan right from the start of construction. There are however only a handful of lenders, so it’s likely your local bank is not able to offer you a fixed rate construction loan.
Why Would I Want A Fixed Rate Construction Loan?
There are many advantages to fixing your home loan at the start of construction rather than waiting until construction has finished, as is regularly the practice. These are as follows:
- Ability to lock in the rate in today – rather than wait 6 to 12 months until construction has been completed, you can take advantage of rates today which insulates you from further rate rises throughout construction.
- Certainty of repayments – great for budgeting what your repayments would be throughout the construction, which enables you to have adequate cash reserves through the construction process.
- Enables you to take advantage of a special discounted fixed rate – may not be on offer when construction has finalised in the future.
You will also receive the regular benefits that accompany fixed rates which include, fixed rate terms that are available from 1 to 5 years, rate lock (this allows you to secure your rate at application rather than at settlement) and progress payment redraws throughout the construction.
Enquire now to talk to us about how you can take advantage of having the security of a fixed rate construction loan today.
