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Aussie Home Loans has unveiled a 4.74 per cent construction loan in response to the “surging demand for new homes and renovations”.
The Aussie Optimizer Construction Loan is priced at the same rate as the Aussie Optimizer residential product for loans up to $750,000, with the rate currently sitting at 4.74 per cent.
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The construction product has a maximum LVR of 90 per cent for loans up to $500,000 and 80 per cent for loans between $500,000 and $750,000.
Progress payments are made at each stage of construction, with up to five payments allowed.
The loans can also work in conjunction with first home owner grants in all states and territories.
However, the loans are not available outside metropolitan areas, and are not available for owner-builders, kit homes or demountable homes.
Home loans portfolio head Susan Davidson said Aussie wanted to help new home builders as well as renovators who wanted to lift the value of their homes without having to move.
“Interest is only charged on the amount drawn down and loan repayments are interest-only during the construction period, providing comfort and security to renovators and home builders who have to make progress payments throughout the work,” she said.
“We expect our new Aussie Optimizer construction loans to further stimulate the home building and renovation sector as we provide a great product to people wanting to invest in and create their own property.”
[Related: Aussie rate cut ‘throws down gauntlet’ to big banks]
