Adelaide Bank rolls out construction lending to brokers

Brokers can now offer building loans to owner-occupiers and investors through the SmartFit, SmartFix, SmartDoc Variable and SmartDoc Fixed products.

With a standard building loan fee of $400, the construction loan holds the same interest rates as the standard product rates and can be offered on a principal and interest or interest-only basis for both fixed and variable rates. A 100 per cent offset and electronic redraw after construction term is included.

The maximum loan-to-value restrictions are:

A low doc option is also available.

Fons Caminiti, national manager for broker sales and distribution at Adelaide Bank, told The Adviser that the new offering comes off the back of broker demand.

He said: “When I got into the business [in 2013], I spoke to brokers, and particularly in South Australia where I’m based, they said that they were finding us a bit hard to use. For example, if they had a client who wanted to refinance but would build later down the track or build an investment property, they were looking to other lenders.

“So, we wanted to give our value proposition a bit more meat on the bone and provide brokers with an opportunity to use us for existing and new customers if they want to build an owner-occupier or investment property. So that is what has now transpired.”

Mr Caminiti added: “It still fits within our value proposition of keeping things simple. This is not for property developers, it’s not for people wanting to do multiple dwellings, it’s pretty simple stuff. But it just adds another string to our bow, and to our brokers’ bows as well.”

[Related: Sneak peek!]