Construction finance available throughout Australia
We simplify construction finance and help you get the development capital you need, when you need it.
The current scenario of uncertainty calls for a change in construction finance, and the overall lending landscape, as we know it. Even as other financial institutions continue to make financing tough with stricter LVR percentages, higher construction loan deposits, and high rates of interest, Lightspeed Mortgage Management offers quick and convenient drawdown loans that stand out from other players.
We understand that you need a reliable partner with experience in construction finance to give you easy access to capital when you need it.
Discuss your projectCustomised construction finance solutions that cater to your needs
- Pay interest on the amount drawn down, not against the approved loan amount or the fully drawn advance
- Option to use commercial or residential property as security
- Progressive drawdown loan with funding for up to 75% of Total Development Costs (TDC), or up to 70% of Net Realisable Value (NRV), at 1st mortgage rates
- Ease of settling on a second mortgage to use as mezzanine where available
- Construction loans from $100k up to $50 million* – for anything greater, please discuss with one of our loan facilitators directly
- Applicable across metropolitan areas and larger regional centres in Australia
- Low construction loan rates across Australia (<6%) (POA)
- A lower level of pre-sales required to kickstart the project
The problem with construction finance
High LVR, the large construction loan deposits required by lenders, and the high construction finance rates Australia has witnessed over recent years can all pose a problem for the borrower.
We make it possible to access a structured finance facility as an alternative to traditional sources of funding. A key component of our loans is the lower amount of pre-sales required to kickstart the project. At Lightspeed, we simplify obtaining construction finance by offering flexible terms and among the lowest construction loan rates Australia has to offer, providing interest cost savings and reduced timelines on development projects.
Benefits that accrue to construction finance borrowers across Australia
| Interest rate | <6.00% (POA) |
|---|---|
| Pre-sales | Negotiable, starting from zero upwards |
| Loan sizes | $200,000 + |
| Project locations | Metropolitan areas or larger regional centres in Australia |
| Project types | Any construction transactions or land subdivisions |
| LVR | Funding of 75% of TDC or 70% of NRV at 1st mortgage rates |
| Establishment fees | From 1.25% of the loan amount* |
| Valuations | Required |
| Quantity surveyor reports | Required |
Materials supply arrangement
One of our private lenders is a significant building supplies company. Where this funding line is used, the following applies:
- Provide a minimum of $1M worth of materials to the project via our client funder (sample project build price circa $5M+)
- It is expected that material for your project would be sourced via our client for the purpose of funding
- Materials will meet strict Australian Standards
- Savings are anticipated on the material costs of the project funded
- The builder, engineers, and supply company will negotiate what materials can be supplied to each transaction
The solution to high LVR, high deposits, and high construction finance rates
Lightspeed construction finance offers easy funding at manageable LVR and a liberal construction loan deposit requirement. We’re also among the mortgage management companies that offer construction loan rates as low as 6%.
Since construction finance amounts tend to be larger, a single percentage point can make plenty of difference. If you use a construction loan calculator to see how much you’ll pay in interest when rates are 6% versus 8%, you’ll see a significant difference.
You can also pay off a loan quicker for a given monthly payment if your interest rate is low. If you need an expert by your side as you make a decision about your construction loan, we can help.
Why Lightspeed for construction finance
We help businesses whenever there is a short-term fund shortfall. We understand that even when borrowers do their due diligence, use a construction loan calculator, and keep buffer funds for their development projects, a short-term capital deficit can still be unavoidable – and should not be holding you back.
Exceptional scenarios call for exceptional solutions in construction finance, which is why we bridge the gaps in funding with remarkable speed and efficiency.
Get in touch at info@lsmm.com.au to apply for customised construction finance across Australia tailored to your requirements, or call us directly on 1300 133 406.
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