FOUNDATION FINANCE lends up to 75% of the 'as if complete' value. This means we may fund up to 100% of all your costs including the land!
OTHER FINANCIERS** lend 75% of your costs and therefore require a deposit on the land and/or other equity.
FOUNDATION FINANCE does not require a copy of your financial statements or evidence of your debt servicing capacity.
OTHER FINANCIERS** require your full current financial statements and cash flow budgets showing your capacity to service the debt.
FOUNDATION FINANCE does not charge standard monthly interest payments during the loan. The administration fee is capitalised in the load and a Success Fee is payable when you repay the loan from the sale or refinance of the property.
OTHER FINANCIERS** require the fees to be paid up front and interest payments paid during the loan term.
FOUNDATION FINANCE only takes first mortgage security on the project itself, reducing the risk to your personal assets.* If you can't repay the loan once the house is complete, you can walk away without liability.*
OTHER FINANCIERS** require a full personal guarantee with the consequence that your personal assets are tied to your business activites. If you can't sell the house and repay the load there may be serious consequnces, including bankruptcy.
FOUNDATION FINANCE agrees on the progress payments in advance so you'll know exactly how much to expect at each stage of construction. Our Quantity Surveyor will visit the site prior to each draw to confirm the stage has been completed.
OTHER FINANCIERS** assess progress payments during construction rather than agreed at the outset. Valuers or Quantity Surveyors would be instructed to value on a 'cost to complete' basis. Where the cost to complete certification does not agree with your expectations you face the risk of unexpectedly injecting more of your own money into the project.
* Providing that the terms and conditions of the loan have not been breached
** OTHER FINANCIERS is meant to represent only a cross section of possible requirements by other fianciers.