Introduction to Alt Doc Construction Loans

• What is the Alt Doc Construction Loan?
• How do construction loans differ from home loans?
• Uniqueness of Brighten

When approving a construction loan, most traditional banks usually require the borrower to provide a series of documents to verify their repayment ability and creditworthiness. However, some borrowers, such as self-employed, are unable to provide the full documentation required due to their unique income circumstances. For these individuals, the alt doc construction loan may be perfect solution to help them realise their dream of building a home.

What is the Alt Doc Construction Loan?

Alt Doc Construction Loans are designed to provide borrowers with alternative loan options. Unlike traditional loans, alt doc loans streamline the approval process and allow borrowers to provide alternative financial documentation to prove their ability to repay the loan. Alt Doc Construction Loans are generally suitable for the following groups of borrowers:

Self-employed

They are usually business owners who have an inconsistent income and are unable to provide business financial statements for more than one year.

Contract employee

They may not have a long-term employment contract or traditional income but they are still capable of repaying the loan.

Expatriate

Australian citizens or permanent residents living overseas who often struggle to provide the required documentation to meet the criteria for a loan in Australia.

Freelancers

Freelancers without regular employment who earn an income through financial investments or other methods.

How do construction loans differ from home loans?

Home loans are paid to the borrower in a lump sum to purchase a new or existing home. They have flexible repayment options which are categorised as principal and interest or interest-only loans and can have variable or fixed interest rates based on the borrowers’ preferences and general market conditions.

Construction loans are specifically designed to support the construction of new homes or renovation projects on existing properties. Loans are not provided as a lump sum. Instead, they are released gradually to the builders in accordance with the progress of the construction phases. These loans usually begin with the interest-only period, during which borrowers are only obligated to make interest payments and are not required to repay the principal amount. This structure helps alleviate financial burden during the construction process. Borrowers also have the flexibility to choose between variable and fixed interest rates, depending on their needs and the terms of the loan agreement.

Uniqueness of Brighten

Brighten specialises in introducing alternative and innovative options to the traditional lending sector. In addition to home loans servicing self-employed and expatriate Australians, we also offer construction loans designed specifically for non-Australian residents to enable them to participate in the Australian real estate market and fulfill their aspirations to build or invest in houses in Australia. What’s more, Brighten’s customised construction loan solutions also provide non-Australian residents with more flexibility and diversity to meet their unique needs.

Contact Brighten professional loan team to start your Australian home building dream.