What are the advantages of construction financing?
Anyone wishing to build, transform, or renovate a property to make it suitable for residential rental can use construction financing. Build Finance offers professional real estate investors far more in this area than other market players.
Real estate financing
Construction financing can be beneficial if you, as a professional real estate investor, want to limit the use of your own funds. The financing capacity is determined partly based on the construction costs, and part of the financing can also be provided through a construction fund. As construction progresses, invoices can be paid from the construction fund to the contractor based on the agreements made. The construction fund can also be used to pay the interest and repayment obligations on the rental mortgage. This can be beneficial if there is no rental income during the construction or renovation period.
Construction financing at Build Finance
Build Finance is an expert in financing residential real estate. You'll receive an indicative offer within 48 hours, and your rental mortgage can be approved within 14 days. We also offer attractive terms and conditions. For a construction fund for existing properties, we apply a maximum of 20% of the market value before renovation (Loan to Cost) and a standard term of 6 months, with the option of a 3-month extension. For new construction or renovations, the upper limit of the construction fund depends on the property being financed. The term is 12 months, with the option of a 6-month extension. The interest on the construction fund is 1.5% lower than the fixed interest rate on a rental mortgage.
Looking to finance rental properties, including construction financing? Request a quote .
