Bank Construction Finance Sponsor Requirements
The minimum Bank Construction Finance Sponsor requirements would typically include:
In addition to the above Sponsor requirements, banks will also have stringent construction finance requirements around pre-sales, level of equity required, location and product mix.
It is important to note that banks, like any other lender have changing appetites from time to time. Just because you could borrow 80% of cost from your bank 24 months ago, does certainly not guarantee that they would do the same loan parameters today.
Typical Lending Parameters for Bank Construction Finance
Up to 60% LVR
70% LCR
Up to 120%
Cover through the Net Proceeds of Compliant Pre-sales
Interest Rates from 3.5% p.a.
and Line Fees from 1.3% p.a.