Construction finance is a genuine specialisation for the Iconic team. Some of Perth’s biggest building groups refer their clients to us so we are well placed to provide excellent construction finance services. With our team working with over 150 construction finance loans every month, the experience we offer you is above and beyond the average broker.
For you, our service is all about managing the entire process from handling the finance extensions and liaising with builders, land agents, settlement agents and you to ensure a smooth path and stress free process.
A construction loan is a more complex process than an established loan with more parties involved and more working parts. The Iconic team are perfectly placed to take you through the whole process and make sure you have as little as possible to worry about.
It is usual that a client will be told “No” when walking into a bank. This is because every bank has completely different lending criteria and whilst one will say no, there maybe 15 more that say yes. You can spend your time sitting through appointments with the banks, or you can sit with an Iconic broker and let us do the legwork.
Sometimes banks and brokers inexperienced in construction finance may structure the transaction with land separate to the house. This can mean that customers settle on the land earlier than necessary and pay more interest. Structuring it as a house and land package or combined transaction and land settlement is pushed out to coincide more with the timing of the slab going down with the builder. Also this assists first home buyers because when a transaction is split into land separate to house the client has to pay stamp duty on land settlement and claim this back at first progress draw of the property being built. This also means that the First Home Owners grant cannot be forwarded to assist with fees at land settlement if done separately - again due to the fact that the signed building contract defines the client as a first home buyer, not the land contract. Whilst the grant and stamp duty can be reclaimed later in the transaction - some clients do not have these funds unless made available at land settlement and stamp duty simply doesn't have to be paid. It’s also a real hassle claiming it back later.
Not all lenders and brokers understand the construction process, but we certainly do. We do it day in, day out and understand the intricacies of the process. Partner with a finance broker that understands what can go wrong and is ready to work around issues to make the process smoother.