With ABS figures showing consecutive increases in construction commitments for owner occupiers over the past eighteen months to May 2014¹, Aussie has responded to demand with the launch of Aussie Optimizer Construction Loan.
Available from today, Aussie has launched the Aussie Optimizer Construction Loan at the same low variable rates as its existing Aussie Optimizer, from just 4.74 per cent^ (comparison rate* 4.93 per cent p.a.) for loans of up to $750,000.
May’s ABS figures also revealed the number of construction loans have lifted in the last two years by 20 per cent² - an indication that home owners may be increasingly looking to upgrade their homes through renovation or knockdown rebuild as a cheaper alternative to moving.
Ms Susan Davidson, Head of Aussie Home Loans Portfolio, says: “We have deliberately created a low cost loan to help renovators lift the value of their homes or apartments or perhaps to meet their changing needs without having to move. The loans are also great for new home builders.
“Interest is only charged on the amount drawn down, and loan repayments are interest only during the construction period providing comfort and security to renovators and home builders who have to make progress payments throughout the work”, she added.
“We expect our new Aussie Optimizer construction loans to further stimulate the home building and renovation sector as we provide a great product to people wanting to invest in and create their own property,” Ms Davidson added.
Available in metropolitan areas only, the new construction loans have a maximum loan to value ratio of 90 per cent for loans up to $500,000, and 80 per cent for loans up to $750,000.
Progress payments are made at each stage of construction. As a guide, there can be up to five progress payments from slabs being poured through to practical completion. The loans can also work in conjunction with First Home Owner Grants in every state and territory around the country.
The new construction loans are available on Aussie Optimizer Variable and Aussie Optimizer Plus at the same interest rates with full discounted rates retained during and post construction, giving home builders and renovators the same great Aussie rates as people buying an established property. The loans are not available for owner builders, kit or demountable homes.
For more information or to arrange an obligation free appointment with your local Aussie broker visit www.aussie.com.au or call 13 13 33.