Why Choose A Construction Loan?
A construction loan is designed to cover the costs of building your new home, from buying land to final construction. Unlike traditional home loans, construction loans provide funds in stages, ensuring you only pay for the work as it’s completed.
Tip: Construction loans can also be used for major renovations or improvements to an established property.
Do I Qualify?
To qualify for a construction loan, lenders evaluate:.
- Credit Score: A strong credit history with no defaults or arrears.
- Upfront Investment: A deposit of 10% is typically required.
- Detailed Plans and Budget: Including designs, timelines, and cost breakdowns.
- Builder’s Credentials: Your builder’s experience, licensing, and insurance are scrutinised.
- Property’s Future Value:A valuation to estimate the property’s worth post-construction.
- Proof of Land Ownership:If you bought land, provide a Certificate of Title to prove legal ownership.
How Does It Work?
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Pre-Approval
Understand your borrowing capacity based on income, credit, and building plans.
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Submit Building Plans
Provide detailed construction plans, contracts, and council approvals if needed.
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Property Valuation
The lender will assess the current and projected value of your property
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Loan Approval
Once all checks are complete, the loan is approved, and funds are allocated.
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Progress Payments
Funds are released in stages as construction milestones are met. This includes land purchase, foundation completion, frame installation, lockup stage and final completion.
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Interest-Only Payments
Pay interest only on funds drawn during construction
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After Construction Is Complete
After completion, the loan will switch to a standard home loan with regular payments.
Tip: Construction must start within six months and finish within 24 months. Ensure council-approved plans and Home Warranty Insurance (or equivalent) are ready before the first progress payment.
See what our clients have to say
We went through Home loan experts for our construction loan. Our experience has been amazing. Ajar and Shristika were on top of everything and were very supportive of all our queries/ questions along the way. Our loan is fully approved now. We highly recommend Home Loan experts!
Very knowledgeable with excellent communication. Rojan secured us a loan despite a lot of complexity in our situation including foreign income, a modular construction loan and a complex trust set-up. Highly recommend!
I am extremely satisfied with the prompt responses and actions provided by the team. I successfully obtained land and construction loans through the assistance of Vivienne Than. During the final stages of the process, Sudikshya played a crucial role in managing progress payments. Her timely communication and proactive approach in liaising with the lender ensured that payments were processed efficiently, and she kept me updated throughout the process. I am grateful for their exceptional service and dedication.
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Award-Winning Expertise At Your Service
We Are Construction Specialists
We can structure your loan in a way that ensures that your new home is built without the hassles.
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Enquire with us.
Complete our online assessment form to see if you’re eligible for a construction loan, or connect with our experts at 1300 889 743
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Understand your situation.
A dedicated expert will connect with you to understand your specific goals. Together, we’ll assess your home building needs.
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Secure your perfect home loan.
With our wide network of lenders, secure a loan that’s perfectly suited to your profession and financial situation.