Construction & Reno Finance

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Building your new home is one of the most exciting opportunities in life where you get to design and build it how you like, deciding on the features you want without having to spend money, the location of a suitable block in a community where you want to live from the ground up.

If you are planning on doing a Reno or building a New Home or Investment Property, a construction loan may be suitable. This loan requires a duly completed and signed fixed price HIA building contract, building plans, specifications and addenda from a registered builder.

These loans are typically interest only for the duration of construction program and then reverting to principal and interest once construction is completed. For investment purposes, this interest only term can be continued.

A construction loan will fund drawdown payments during the construction process until project is complete when the loan will be fully drawn down. Depending on the timing, you may need to settle the land first then proceed with the construction separately. In that instance you could have two loans – one for the land settlement and one for the construction.

The builder will require progress payments from the lender following the completion of each stage, that are typically over six payments, being Deposit, Slab Down, Plate Height (bricks at ceiling level), Roof On, Lock Up and Completion being final payment.

There are a significant number of steps involved, from choosing the block, possibly waiting for titles, to identifying builder, agreeing on plans, applying for finance for the land and construction, to council approvals and construction and then final inspection and signoff.

This is where we come in, we’re very experienced and we’ve helped many Australians build their new home and investment properties. We will help you every step of the way and ‘hold your hand’ on what can be a stressful journey.

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