Home Loans, Refinance, Business Loans, Deposit Gap Finance

Home Construction & Development Finance

Construction loans for home builders & home renovators

The building or renovating of your home is a significant undertaking, but all the stresses and hard work will be worth it once your dream home or renovation is complete.

While these new build projects can be costly and often drawn out, RedCap Finance Brokers can lend a hand with construction loan resources and solutions specially designed for new home builders, developers, and home renovators.

When it comes to building or renovating, there are two approaches you can take.

  • One way is to engage a registered building contractor who will project-manage the completion of all works on your behalf, working to a QBCC-approved fixed price building contract, or
  • Two, you might carry out the work yourself and project-manage as an owner-builder.

Whatever construction method you choose, each will have a different set of requirements for the loan process and the type of loan you can apply for.

With our expertise, specialist advice, and a range of funding options, we can help you find the most suitable construction loan to fit your needs.

Our experienced mortgage brokers will step you through the process and find the best loan to support your objectives.

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Home Loans, Refinances, Deposit Gap Loans


The Initial Inquiry - Pre-Planning and Indicative Borrowing Capacity

Applying for a loan involves much more than filling out paperwork and saying a prayer. Among other things, you need to consider the state of your personal and business finances, how you’re going to repay the loan and how much money you actually need. 

4 Steps to Ask Yourself BEFORE Inquiring about getting a Loan

  • Ask for advice first, inquire about getting money second. Be honest about your situation and ask if there's any way you can achieve your goals WITHOUT borrowing money!
  • Establish the NEED as to why You Need to borrow the money.
  • Accept Responsibility for using Other People's money and the need to make sure that you can pay it back without causing hardship.
  • Make your own worst-case scenario plan on how you will repay the loan - even when your world turns upside down.

The first step in applying for a loan is to formally assess your situation based on the information you have given us.

The purpose of this meeting is to help explain your results and the different financing options that may be best suited to your goals.

This initial assessment does not guarantee that a lender will grant you approval for a mortgage, however, it does provide the knowledge required to set realistic expectations in achieving that goal.

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Investment Property Finance

There was a time when investing in property was a difficult process. Thankfully, it’s a process that is being constantly simplified and has now become a viable investment option within reach of many property owners.

So, you have decided to purchase an Investment Property, whether it's investment property number 1 or number 100, you may be still a little nervous. ​Financing investment property is not always straightforward.

Oftentimes you need an outside-the-square solution that meets your loan requirements today and into the future.

Why invest in property?

A person will invest their money looking to provide a return in the future that’s greater than the initial investment.

One of the most popular methods of investing is to buy a property with the expectation that the capital value of the property will increase over time, plus provide a positive net cash flow to pay for all expenses of ownership of that property and with some cash leftover.​

Capital growth 

Property is an asset class that has appreciated in value over time. While there may be peaks and troughs in the property cycle, the Australian property market is considered one of the least volatile investment options. Based on the performance of the Australian property market, over the long term, you can generally expect the value of your property to grow and provide a strong return on your initial investment.

Direct involvement

Unlike many other investment types (shares, super and managed funds) where the most you can see of your investment is some numbers on a page, an investment in property means you have something tangible to show for the money you’ve invested. An added bonus is that you can renovate, decorate and personalise the property to suit you. These changes can add further value to your property, meaning your potential return at sale and the amount you can charge in rent increases too.

Income tax benefits

When you invest in property, your investment may provide you with many benefits come tax time, provided you have the right investment structures in place. Through negative-gearing, you may be able to save considerable amounts of tax on your personal income. By taking a long term view and keeping your property for more than 12 months, you may be eligible to pay a reduced amount of capital gains tax on any profits from the sale of the property.

How to get started

1. The Deposit - 20% + Establishment Costs + Shortfall in Valuation

Raising the deposit for your first investment property is accomplished in one of two ways, either through diligently saving for that deposit or by borrowing against the equity in your principal place of residence (aka their own home they live in.)

  • Disciplined budgeting of your income and expenses is required to save for the 20% deposit of the value of the property you are considering purchasing.
  • Other ways to finance your deposit could be through
  • Gifts from family or friends.
  • It could potentially be via a private loan from someone you know.
  • Apply for a Deposit Gap Loan from a registered lender

Alright, so we’ve got the deposit which is somewhere between 5 to 20% plus we need money for the costs like stamp duty, valuation shortfall, and things like that.

1. The Balance - 80% of Contract Price (or 80% of Valuation if Lower)

An investment home loan from a registered mortgage lender (Bank, Building Society, Non-Bank lender, Private lender) is the most common way of financing the rest of the property purchase price.

The home loan that you choose is ultimately up to you but obviously, a competent mortgage broker can help you with the information you need to determine which lender and product will suit you best. 

By talking with us, we can help you to get the loan you need.

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