Brighten launches vacant land lending product
Publication Date: Thursday, 12 December 2024
This article originally appeared in Australian Broker.
A vacant land lending product developed with broker feedback in response to growing demand has been rolled out.
Non-bank lender Brighten has released a new product, Brighten Land, aimed at giving more flexibility to customers who are looking to secure land or refinance existing vacant land loans.
Key features of Brighten Land include a maximum loan size of $1.5 million, up to 75 per cent loan-to-value ratio (LVR) and interest-only repayments.
The product is available to full doc prime, alt doc prime, expat and non-resident borrowers.
Brighten said its latest product was developed in response to feedback from brokers and will give borrowers more time to complete building work.
Traditional construction loans often require building work to be completed within 12 months (which has been harder for builders to meet in the last few years). This is being made more difficult by workforce shortages in the construction industry, which is falling well short of the 90,000 new tradies needed between April and the end of 2024 (according to BuildSkills Australia), with the Australian Bureau of Statistics showing that just over half that number have been hired.
According to Brighten, this is adding pressure onto the construction industry and causing delayed start and completion dates.
The new vacant land loan gives borrowers up to two years to move to the next phase of their property construction plans.
Announcing the new product, Brighten said it was aiming to bridge the gap between when customers refinance or buy land and when construction starts.
“Brighten Land reflects our commitment to continuously listening to brokers and responding to their feedback,” Brighten CEO Jason Azzopardi said.
“We’re seeing growing demand from customers who aren’t ready to start construction immediately but want the flexibility to secure the land or refinance their existing vacant land loans. This product provides brokers with a tailored solution to help their clients confidently plan for the future.
“Looking ahead, we will continue to focus on helping our brokers grow their business. Whether it’s through innovative products like Brighten Land or our continued technology enhancements, such as the recent launch of ApplyOnline and the Brighten Broker Portal, we’re always looking for ways to help brokers deliver value to their clients,” Azzopardi said.