Passionate Mortgage Broker at Entourage Finance | Residential Lending, Home Loans, Mortgages, Investor Finance | Construction & Development Lending
Another fun project I'm helping clients' with is this structural renovation of their existing owner occupied home. As you may be aware, there is more than one way to fund a renovation. Indeed, not everyone opts for the traditional construction loan as this can at times be limiting depending on the process of the builder/architect. For this client, even though they are completing a structural renovation, they were able to refinance and use the equity they had in the property to obtain the funds they needed for the renovation. The major difference between a cash out/top up vs. a construction loan is that when you do the cash out you get all of the funds upfront and will have to manage the payments to the builder yourself. If you opt for a traditional construction loan the bank manages that process and pays out the progress payments at pre-agreed stages as per the construction contract. We've got a little article on this topic if you wanted to read further about this type of loan: https://lnkd.in/gBe8QbJN
