Construction Loans
Start building or get a quote now!
Build your dream home or commercial project with our construction loans.
Offering flexible drawdown schedules and competitive rates, our construction financing solutions are tailored to support you through every stage of your building journey.
Start building or get a quote now!
Key Features :
Staged Payments
Construction loans typically provide funds in stages, aligned with the progress of the building project, ensuring that you only pay interest on the amount drawn down.
Interest-Only During Construction
Many construction loans offer interest-only payments during the construction phase, helping to manage cash flow until the project is completed.
Flexible Loan Terms
Construction loans often come with flexible terms that can be tailored to the timeline and scope of your building project.
Conversion to Permanent Loan
Upon completion of the construction, these loans can often be converted to a standard mortgage, simplifying the financing process.
Considerations :
Project Budget
It’s crucial to have a detailed and realistic budget for your construction project, including contingencies for unexpected expenses.
Approval Process
The approval process for construction loans can be more complex than standard mortgages, requiring detailed project plans, builder contracts, and cost estimates.
Loan-to-Value Ratio (LVR)
The LVR for construction loans may differ from traditional mortgages, impacting the amount you can borrow and possibly requiring Lenders Mortgage Insurance (LMI).
Progress Inspections
Lenders often require regular inspections of the construction progress before releasing funds, ensuring the project is on track and within budget.
Long Term Impacts
Ensure that the construction loan aligns with your long-term financial goals and provides a solid foundation for future financial stability.