Latrobe construction loans suit applicants looking to complete construction of a single dwelling right through to developers looking to complete small medium development projects. What differentiates La Trobe Financial to other specialist lenders is experience in this niche market. Policy includes Flexible pre-sales requirement, Interest capitalised during development stage, take-out finance available.
Loan purpose is Construction of small scale residential developments.
Acceptable areas includes Metropolitan, Major regional locations considered
Minimum loan amounts $100,000
Maximum loan amount Single dwelling $2,500,000, Multi dwelling $25,000,000
Maximum LVR (SINGLE) 75% - $2,500,000. Loan Amount not to exceed 80% of the total development costs
MAXIMUM LVR
(MULTI)70% - $5,000,000, 65% - $25,000,000. Loan Amount not to exceed 80% of the total
development cost
LMI required No
Maximum loan term Development finance: 2 years
REPAYMENT TYPE Interest only. Single build loans can revert to Principal and Interest upon completion of construction
MAXIMUM INTEREST ONLY TERM 2 years
Latrobe consider financing on senior debt positions in the development stage of assets. They view this as an attractive part of their broad residential lending program, reflecting both characteristics of the finished assets and of the development process:
• High quality and marketable residential assets upon completion supporting take out.
• Limited development sizes and exposures, with numerous positive consequences for risk.
• Prudent lending terms.
• Well understood, straight forward and reliable development pathways, approvals and build requirements.
• Predictable and relatively short term timeframes.
• Relatively standardised and comparable deals.
• Experienced developers with high quality track records and seeking repeat funding, and
• Strong ongoing deal flow reflecting long term redevelopment demographics.
La Trobe Financial views the transformation process now underway in the growth of small to medium size, low rise residential dwellings, to be a significant long term trend. These assets are lower profile than other development assets – literally high rise and high profile - but view them as a high quality component of the Australian property landscape for the foreseeable future and we believe they offer participants valuable ongoing outcomes.