Construction Mortgage Loan

What is construction mortgage loan?

Residential and commercial properties in UAE are almost always in demand. However, constructing buildings is a costly matter. Purchasing the land, sourcing materials and paying labour would incur high costs, which might significantly dent any business’s cash flow. Construction mortgage loan – a purpose-built financial solution is your best solution. Available for building new properties, developing existing properties and carrying out renovations, construction loans are cost-effective, short-term and flexible loans secured to fund a diverse range of property development projects.

A construction mortgage loan, also known as a construction loan or a home construction loan, is a type of financing designed specifically for individuals or companies undertaking the construction of a new property or the significant renovation of an existing property. It provides funds to cover the costs of construction, including labor, materials, permits, and other related expenses.

How Do Construction Loans Work?

The construction mortgage loan usually has a shorter term compared to a standard mortgage loan, often ranging from six months to two years. During the construction period, borrowers are typically required to make interest-only payments on the loan. Once the construction is complete, the loan can either be converted into a permanent mortgage loan or paid off entirely with the proceeds from the sale or refinancing of the property.

If you have been planning to buy a commercial property, build on a property that you already own or renovate an existing commercial building, a construction mortgage loan is your best choice. With much more flexibility in terms and guidelines, construction loans help you keep your balance sheet manageable during a build and allow you to work on your loan terms based on your project needs. Despite the benefits, finding the best loan for construction and going through the lengthy and complicated loan approval process can be arduous and stressful. This is where Cozmo Mortgages can be at your assistance. Our team of trusted and reliable mortgage advisors can provide you with expert and unbiased advice on various loan options available for land and construction projects. Having an extensive experience in the industry, we have a sound knowledge of the technicalities of commercial lending and can assist you with professional services to make the right decisions.

Loan for Land and Construction

What Is A Land Loan?

loan for land, also known as a land loan, is a type of financing that is specifically designed to help individuals or businesses purchase a piece of land. Land loans are typically used for various purposes, such as buying land for residential or commercial development, agricultural use, or investment purposes.

How Do Land Loans Work?

Land loans are designed for individuals or businesses to purchase undeveloped land. Mostly, these loans are offered by banks, credit unions, or specialized lenders. When applying for a land loan, the borrower needs to provide information about the intention behind the use of the land, such as residential or commercial purposes. The lender evaluates the borrower’s credit and the value of the land to decide the loan amount and interest rate. Land loans usually require a larger down payment than regular mortgage loans, usually between 20% and 50% of the price of the land. The loan time is usually shorter, lasting from a few years to ten years, and interest rates can be higher because undeveloped land is riskier. Once approved, the borrower makes regular payments to repay the loan and interest. If the borrower doesn’t pay back the loan, the lender may take the land as security to recover their investment.
Many leading banks and lenders offer loan for land and construction that adds ease and efficiency to your borrowing and property development experience. Our advisors are there every step of the way to help guide your construction financing from start to finish. At Cozmo Mortgages, we take the time to understand the complexities of your project, business niche and project needs. Walking you through everything from acquiring land to completing your property, we make sure to find the right financing solutions tailored to your specific need. On-going communication with all stakeholders helps ensure that your land and construction project is completed on time and within budget.

Our team will work closely with you to learn about your financial condition and project needs so that we can find and explain your construction mortgage loan and land loan options. Instead of confusing you with complex and technical jargon, our advisors would explain the pros and cons of every mortgage option in an easy-to-understand manner. As we are not tied to any lenders or financial institutions, we can scour the market to find the best deal suited to your needs.

Cozmo Mortgages Land and Construction Mortgage Loan Advisor

Our team draw on our experience to streamline the lending and borrowing process by delivering bespoke solutions to meet your requirements. Licensed by the Dubai Economic Department (DED) and the Dubai Real Estate Regulatory Authority (RERA), Cozmo Mortgages is committed to transparency and will be upfront with you from the get-go. With more than 12 years of experience, we have built a strong reputation in the industry and helped many homeowners, property investors, and builders realise their property development and financial goals.

Dealing with different banks and lenders for construction mortgages or loans for land and construction on your own is a difficult endeavour. Our knowledgeable, experienced, and accredited mortgage adviser can examine and shortlist your loan choices before negotiating a great deal.  One of the advantages of working with Cozmo Mortgages is that we have direct access to specialist mortgage lenders that can provide the best rates for even the most complicated financial circumstances. In addition to scouring the best loans, our advisors are skilled in handling all the legwork and negotiation for you.

Save time, effort and stress by hiring the expert team at Cozmo Mortgages. Get in touch with us for a free consultation right away.