Whether you’re building a new home or renovating an existing property, a construction loan works differently from a standard home loan. Instead of receiving a lump sum upfront, funds are released in stages as your project progresses. This means the loan covers the costs incurred at each stage of construction, making it an ideal solution to finance your dream home.
Before starting your construction project, it’s essential to understand your borrowing capacity. Since construction loans cannot typically be topped up once the project begins, planning ahead is key. Our team can help you assess how much you can borrow, so you can confidently plan your construction and budget for the future.
Securing a construction loan can differ significantly from getting a standard home loan, with additional documentation and stricter requirements. To qualify, you’ll need to provide:
Detailed financial information and verification documents, just like with any standard loan application.
Council-approved plans and specifications (or, if not yet approved, plans that will be submitted).
A signed and dated building contract, including payment schedules and construction stages.
Any variations and/or quotes.
A Quantity Surveyor Report for some projects.
Builders Risk Insurance.
Public Liability Insurance for your builder.
The paperwork required can be extensive and time-consuming, but that’s where we come in. Our expert mortgage brokers simplify the application process, ensuring you gather the right documents quickly and efficiently, so your construction loan is approved and funded in a timely manner.
Construction loans don’t have to be more complicated than a regular home loan. However, being well-prepared before you apply is essential to avoid delays. With the right support, securing a construction loan can be a smooth process.
Our team specialises in construction finance and can offer tailored advice and solutions specific to your situation. We’ll guide you through the entire process, from application to approval, and we will manage your stage payments as well.
We can help alleviate the stress of building a new home. With our wealth of knowledge we will simplify what is a complex process.
