Construction loans
Building Your Dream Home? We Make Construction Finance Simple
Building a new home or undertaking a major renovation is the Australian dream, but financing a build is very different from buying an established property. With detailed paperwork, builder contracts, and staggered payments, it can quickly become overwhelming.
We specialize in guiding clients through the construction finance maze. Whether you are buying a house and land package, knocking down and rebuilding, or adding a second story, we ensure your finance is rock solid from the pouring of the slab to the handover of the keys.
How Do Construction Loans Work?
Unlike a standard mortgage where you receive a lump sum of money on settlement day, a construction loan allows you to draw down funds in stages.
This is known as Progress Payments. As your builder completes specific stages of the project, the bank pays them directly. The major benefit for you is that you only pay interest on the money that has been drawn down, not the full loan amount. This helps with your cash flow while you are paying rent or other costs during the build.
The Standard Construction Stages:
Deposit
Before construction begins, you will pay an initial deposit to sign the building contract and secure your start date. This payment covers the builder’s preliminary costs, such as obtaining council permits, finalizing plans, and purchasing insurance.
Base Stage
The site is excavated, underground plumbing is laid, and the concrete slab is poured to create the foundation of the home. Once the slab is cured and certified by a surveyor, the first major progress payment is released to the builder.
Frame Stage
The structural skeleton of the house is erected, including the wall frames and roof trusses, giving you the first real look at the property’s layout. Lenders often require a site inspection at this milestone to verify the work is accurate before releasing funds.
Bank features
Your home becomes secure and weather-tight with the installation of windows, external doors, roofing, and brickwork. This crucial step protects the interior from the elements, allowing electricians and plumbers to begin roughing in their work safely.
Managing your property
The interior features take shape as plasterboard, kitchen cabinetry, bathroom vanities, and internal doors are installed. This is when the house truly starts to feel like a home, with skirting boards and architraves fitted throughout.
Practical Completion
All painting, flooring, and electrical connections are finalized, and you will conduct a final walkthrough with the builder to check for any defects. Once the bank releases this final payment, the build is officially complete and you receive the keys.
Why Use a Broker for your build?
We speak "Builder"
We know what documents the banks need and can liaise with your builder to gather the right contracts and insurance policies.
Managing Drawdowns
When the builder sends an invoice, it can be stressful to get the bank to pay it on time. We assist in the drawdown process to keep the builder happy and the project moving.
The Right Structure
We can help structure your loan as “Interest Only” during the construction phase to minimize your monthly repayments while you wait for the home to be finished.
Builder finder
We can find the rite builder for you depending on the area your looking for and your budget.
Grants and Incentives
Are you a First Home Buyer? Depending on your state, building a new home often attracts the First Home Owner Grant (FHOG) or stamp duty concessions. We will check your eligibility and help you apply for any government schemes you are entitled to.