Construction Loans
Every Australian has an idea of what their dream home should be, however sometimes it may not be available when exploring the property market. This is where a construction loan can help create the house you have always dreamed of.
The construction loan process
Unlike a home loan, when a borrower picks a construction loan, they don’t receive a lump sum loan amount at settlement. With a construction loan, borrowers will ‘drawn down’ specific amounts of the loan as each stage of their build is completed and the suppliers/contractors require payment. When building your dream home, there are usually five stages of construction:
Stage 1 – Foundation
This is the initial part of the construction process, where the foundation is put in place
Stage 2 – Frame
With the foundation in place, it is now time to erect the frame that will act as the skeleton for house
Stage 3 - Lock-up
The ‘lock-up’ stage is where the house can be secured by completing the roof, walls, windows and doors.
Stage 4 - Fitting
Now that the house is secure, it’s time to fill it with all the comforts and amenities that you had dreamed of.
Stage 5 – Completion
Your dream home is now complete! The final part of the loan is drawn down to cover the final payment for your contractors/builders and you are now ready to move in.
As each stage is complete, payment is made, and you will only pay the interest on your loan until construction is finished.
What makes us different?
With brokers all across the country, we can help you build your dream home no matter your location. And, with our network of brokers having access to over 50 lenders, including major banks, non-bank lenders and private funders, we offer borrowers the most competitive loan solutions for their home build.
Speak to your broker today
For more information on how we can help you build your dream home, contact us today!