Do Any Lenders Provide ‘Cost-Plus’ Contracts?
A cost-plus contract sees the builder paid for all expenses, as well as additional funds to account for risk and incentive. There are no set progress schedules in a cost-plus contract. Some lenders offer cost-plus construction lending options, including for owner-builders, though these are niche policies, available from limited lenders. MoneyQuest Newport Beach can guide you through these options if required.
Do I Have to Use a Contract if I Want to Do Structural Renovations?
Not always. If your LVR is low enough, and the bank is confident you have the experience to run your project without progress check-ins, they will consider a cash-out or equity release without a contract. Reach out to us at MoneyQuest Newport Beach for more guidance.
Is There Scope for a Rate Reduction if My Home Has Increased in Value After I Renovate?
Yes. An increased valuation may improve your interest rate if it lowers your LVR. For instance, an LVR below 60% could qualify for a reduction of up to 0.25% compared to a higher LVR above 90%.
At MoneyQuest Newport Beach, we’re offering 15-minute home loan health checks for all members of the Ladies Renovating Collective at the end of January 2025.
These sessions include a complimentary loan comparison summary and an up-to-date property estimate tailored to you and your property. Additionally, we will answer any questions related to construction and renovation finance, bank valuations relating to construction lending, cost-plus contracts, and more.
If you have any specific questions or need a 15-minute home loan check-up before the new year, contact us today, to get your 2025 renovation project off to a head start!
Simon Pak Poy | MoneyQuest Newport Beach
0414 069 551
simon.pakpoy@moneyquest.com.au
Simon Pak Poy is a Credit Representative (No. 399562) of Money Quest Australia Pty Ltd, Australian Credit Licence 487823.