Important Note: This loan type necessitates a guarantor. 

Loan Capacity 

Unlock a 100% construction loan by leveraging a guarantor for diverse property types: 

• Land loans 
• Constructing a duplex or two townhouses 
• Renovations or additions when acquiring a house 

Approval Criteria 

Approval hinges on having a guarantor who pledges their property as supplementary security and employing a licensed builder. 

Savings Requirement for House and Land Packages 

Most packages are financeable up to 95% of the overall cost, with a potential to borrow up to 100% when supported by a guarantor. 

100% Land Loans Availability 

Yes, with the stipulation that construction begins on the vacant land within one or two years. Negotiations may sometimes waive the building requirement. 

No Deposit Loans for Renovations 

Certainly, you can secure up to 95% of the renovation cost. The amount varies based on whether you already own the house or are purchasing one with a building contract. 

Building Houses or Townhouses with No Deposit 

Small-scale developments of up to two dwellings with a 95% loan are feasible. In some scenarios, constructing up to three houses is attainable with a no deposit investment loan. 

Borrowing for Landscaping or Additional Work 

The inclusion of the cost of supplementary improvements is possible, contingent on providing upfront quotes. 

Additional Borrowing 

It is advisable to maintain a financial buffer. No deposit loans allow for 100% coverage of the total cost; if supported by a guarantor, exceeding 100% becomes plausible. 

Payment Process for Builders 

The bank initiates payments to the builder through construction drawdowns. Invoice processing involves signing forms, with the bank subsequently depositing funds into the builder’s account. Progress inspections may be conducted, potentially causing a slight delay in the final drawdown. 

Required Documents 

Apart from the typical documents for a no deposit home loan, additional necessities include a building contract/quote, builder’s license/insurance details, council-approved plans, and quotes for supplementary work. 

Application for Owner Builders 

Owner builders typically encounter challenges in securing 100% loans. The recommendation is to either enlist a licensed builder’s services or have a family member guarantee the loan