Finding the right loan that is flexible to support you through to completion
Commercial development and construction requires a highly strategic approach with the right financial products that can ensure the successful completion of your project. A large impact to costs and a good return on investments is timely finance and a detailed approach.
Building a home is a complex process that involves multiple parties including builders, contractors, lenders, solicitors, accountants, quantity surveyors and the council.
With so many people involved in the process, there’s always the possibility of a communication breakdown and things may go wrong.
Getting approved for a building loan is half the battle with the majority of mortgage brokers and bank employees not understanding the process.
Our lending specialists in construction loans can quickly work out which lenders can approve your loan.
“Delivering with integrity and innovation is the core to our success with commercial clients” – Yuan Chong, Operations Manager
CalculatorHow much can I borrow? What can I afford? What if I have less than 20% deposit?
Common Questions
In some circumstances we can assist you with a Construction Loan if you an owner builder. To see if you qualify, please contact our office on 02-9299 2263
You are able to make Interest Only mortgage repayments during the construction process (up to 24 months). After this time, your loan will revert to a standard variable rate home loan with principal and interest repayments.
The lender will arrange to pay the builder directly, upon confirmation that one of the five predetermined stages of construction (such as slab down) has been completed.
Construction Loans normally allow up to 2 years to complete the construction of the dwelling after the purchase of the land has settled.
Builders are required to have insurance. You will be able to appoint another builder subject to your lender’s approval to complete the work. In normal circumstances, the insurance company normally pays any difference in costs.
We have a range of lenders offering construction loans which allow you to borrow up to 95% of the value of the property plus additional funds to cover the total cost of Lender’s Mortgage Insurance, if required.
Yes, we have a number of Low Doc Construction Loans available. Call us on 02-9299 2263 to discuss options.
Yes, you can use a Construction Loan to make major renovations to your home or investment property. You will require a fixed price contract from a builder.
The Construction loan allows interest only mortgage repayments for the land portion prior to construction and interest only repayments during the construction process
- The funds will be paid to your builder in draw downs, after a body of work has been completed, ensuring you only pay interest on the portion of the construction loan you have drawn down rather than on the entire loan amount
- Upon completion of construction, your construction loan will automatically revert to a standard variable rate home loan with repayments based on both principal and interest
- You have up to 24 months to complete construction and draw down all funds from the loan.
- The total construction loan may be split between two accounts after construction is complete to assist in managing both personal and investment debt.
As part of your agreement with the builder and a term of accepting a Construction Loan, you are required to get a Fixed Price Contract with your builder; therefore any changes in construction will need to be borne by the builder.
Your construction project is normally divided into 5 stages from slab down to lock up stage. A draw down is a payment made to the builder after each predetermined stage of construction is complete. This will be outlined in your contract with the builder. The advantage of having a draw down payment is that you will only be charged interest on the amount that you have drawn down (paid out to the builder), rather than the full loan amount.
Contact Us
Your journey starts with a simple conversation over the phone or coffee. Our friendly team of lending specialists.