Construction Loans
Construction loans are available for first home buyers to build a new home, current home owners to make improvements, extensions, or build new, or investors wanting to build.
If you are looking to build, talk to us!
The first step in obtaining a construction loan, is to arrange a finance pre-approval. Then you can negotiate with your preferred builder for the house design you require. You then need to provide a contract for the purchase of the vacant land, and a fixed price building contract for the construction.
The builder will usually provide you with the council approved plans, and will determine the full cost to complete. During the time you are building, the lender will inspect the site prior to making payments to the builder on your behalf.
You pay interest only on the amount drawn upon and paid to the builder, at each step of the construction process. On the completion of construction, when the builder has been fully paid, your loan will then revert to your standard monthly payments.
Other loan products