Finance for Homebuilders
Understanding Your Residential Construction Loan
A residential construction loan is designed specifically to finance the building of a new property.
To qualify for a construction loan, you need to present key documentation such as such as the building contract with a licensed builder, council-approved construction plans, and any additional quotes. This ensures that your project is in good hands and meets all necessary standards.
The lender will appoint a valuer to assess the property’s estimated value upon completion. Once approved, the lender will issue a formal loan offer.
Unlike traditional loans that provide a lump sum upfront, construction loans are structured in multiple payment stages throughout the construction process. This means you only draw down the funds as needed, reducing interest payments during the project.
Before payments can be released to your builder, they must submit essential documents such as insurance details and stage invoices, all aligned with the agreed drawdown schedule. This ensures that funds are being used correctly and that construction is progressing on schedule.
During the construction phase, you will only pay interest on the amount of the loan that has been used, not the total loan amount.
Once construction is complete, your construction loan will transition into a standard home loan. At this stage, you will begin making regular principal and interest payments.
Seamless Funding, Every Step of the Way
From securing initial funds to coordinating staged payments, we’re with you at every turn, actively managing your loan to ensure a smooth process. We believe in transparent communication and consistent support, so you stay informed and in control from start to finish.