Timing of access to construction loan.

Hello,

I am planning to do a KDR and build a duplex dwelling on the property. I currently have some savings and this may not cover all of the pre-planning costs to gather the necessary documentation to obtain final loan approval.

I was wondering how long would it normally take for a loan to be approved. I still have a investment loan with Bank First outstanding. I also have a certain amount available for re-draw. If I was to make use of that re-draw now to help pay for the pre-planning costs, how might that affect my borrowing capacity? Would it be possible to access a construction before demolition starts?

Thanks in advance.
Peter

It depends on the overall percentage you borrow - sometimes you can borrow the additional money you need for the demolition as well. The redraw in your investment loan is already considered in your borrowing capacity - however - confirm that with your broker before you take it out

I wanted to do something like that but everything halted because of the corona virus. Hopefully I will be able to do the project next year. I have been working really hard when it came to my own project and I did a lot of research. I looked for a good architect and when I finally found him I had to make sure that he was actually capable of doing he project that I wanted and they way I wanted. After we had that out of the way I started working on the financial aspect of things. I was lucky to find a really cool website that kind of helped me out when it came to information regarding the financial aspects of things. You guys can visit this page if you want to find some more information about loans. Hopefully the pandemic will end soon so that I will be able to do this project soon.