Construction Loans

About Construction Loans

The feature of a Construction Loan involves a number of stages.

• Flooring Stage (during the concrete or timber flooring).
• Framework Stage (during the development of framework).
• Lock up Stage (windows, doors, walls).
• Fit Out Stage (bathrooms, kitchens).
• Completion Stage (completion of the property).

How Construction Loans work

• During the construction of the property, the structure of the loan will feature as an interest only repayment method.
• Payments to your builder will be conducted at the end of each stage, which is when invoices must be provided.
• At the end of each stage, a valuation will be conducted.
• On completion of the property, the repayment structure will change to a flexible home loan.
• On completion, a final valuation will determine the value of the property.

How do I qualify for a Construction Loan?

To qualify for a Construction Loan, it is mandatory that you provide council approved plans and a fixed price tender from a qualified registered builder. During the construction of the property, a copy of the builders insurance must be valid.

Construction Tips

• Find a suitable area
• Visit a number of display homes for ideas and obtain any information.
• Gather at least three or more quotes.
• Compare the quotes.
• Contact the Licensing Authority to check for any claims against the builder's license number.
• Evaluate past constructions that the builder might have completed.
• Speak with your solicitor before entering a contract with the builder.
• If you are unclear of any details, please ask your builder to explain these elements.

Please note: Information that is contained on the web site should be used as a guideline only. You should seek advice from professional financial, legal and real estate specialists before purchasing a property and/or applying for a loan.

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