While building a home can offer many exciting possibilities, it can present just as many challenges. Resi Select’s construction loan is designed to make the process as simple and stress-free as possible for you and your customers.
Initial 2-year Interest Only period
Since last year Resi has offered a 2-year initial IO period for all new and existing Resi Select construction loans. This gives customers more time to complete their construction, without having to apply for an extension in the event of any unexpected delays.
What happens after construction is completed?
With the process having been digitised, construction loans will continue to automatically convert to Principal & Interest once construction is complete, or when the 2-year Interest Only period has expired – whichever comes first.
What if the IO period expires before construction is finished?
If the 2-year Interest Only period expires prior to the construction being completed, the loan will revert to a Principal & Interest loan.
The Interest Only period may be extended for up to another 12-months if necessary. This can be requested as per the current Interest Only extension process. Construction must not exceed 36-months.
Why choose Resi Select for construction
- Plenty of time to complete the build with an initial 2-year Interest Only period.
- Great value with Resi’s standard Principal & Interest rate applied across the Interest Only period.
- Exceptional support from a dedicated credit assessor and case manager to look after you throughout the construction experience.
- No progressive drawdown fees.
- No valuation fees.
- No loan variation fees.
Reminder: Uncertain income verification in the new financial year
When applying, it’s important customers provide the most up-to-date and correct information to prevent unnecessary delays.
As a new financial year begins, payslips issued after June 30 will not show sufficient Year-to-Date information where the income type requires 180-day verification.
When the last 180 days’ income does need to be verified (such as where there is uncertain income) please provide additional documentation to support this verification period.
Further support
If you have any questions or would like to discuss a customer’s scenario, please contact your Resi Business Development Manager or Resi Broker Support.
To check the fact sheet, click here.
