AMO's Construction Loan is the complete solution for any worthwhile projects, including the construction of new buildings, development work or additional home renovations. Our loan allows you to carry out your work and progressively draw-down on your loan.
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 loan will be interest only.
- Payments to your builder will be conducted at the end of each stage.
- 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.
- 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.
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.