If you are Looking to Build, we can help you with Your Construction Loan

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  • Guide you from preapproval to settlement
  • Borrow up to 95% of the total valuation of the property
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Construction Loan

A construction loan works differently from a regular home loan with the purpose of building a house.

The total loan amount is determined and agreed upon in advance, but it is disbursed following a pre-established schedule. Essentially, the lender releases funds in stages, corresponding to the completion of specific construction milestones. This structure offers a significant advantage to the investor as interest payments are made solely on the portion of the loan that has been released. In other words, you only pay interest on the amount you have utilized so far. Click here for FAQ – Construction Loans.

 

When You’ll Need A Construction Loan

Construction financing is necessary for a number of situations and can be used to either finance your dream home or an investment property, extension, or renovation projects including:

– You already own the land and you wish to build on the land to live in

– You wish to purchase a house and land package

– Off-the-plan construction

– Home renovation/extension loan

– Owner builder loan

 

To be eligible for a construction loan in Australia, borrowers typically need to meet certain requirements, such as having a good credit score, a stable income, and a deposit. It is also usually necessary to provide detailed plans and specifications for the construction project, as well as a budget and timeline for completing the work.

 

Construction Loans Consist of Six Stages

Stage 1: Clearing Of The Site

Depending on the nature of the land, there may be soil testing, site-leveling and clearing undertaken prior to actual construction.

Stage 2: The Slab Or Base Stage

As the name suggests, this is simply when the foundation is laid. It includes measuring out the design on the site, pouring the footings, under slab drainage, moisture barrier, and special mesh for termite protection.

Stage 3: Frame Stage

This includes the installation of your internal and external support structure, along with walls, the conduit for electrical and plumbing, the roof frame and sheeting, gutters, and insulation.

Stage 4: Lockup Stage

It’s at this point where you can literally start “locking up” the property because your windows, doors, and the remaining walls will be installed.

It’s also safe for plumbers, electricians, cabinet makers, and other tradesmen to begin fitting out the property.

Stage 5: Fit-out Or Fixing Stage

Plumbing, electrical (including lights and powerpoints), and other fixtures and fittings will be installed.

The design features that make the property a home will also be added such as cornices, tiling, cabinets and shelving, reveals, and architraves.

Stage 6: Practical Completion Stage

This is basically where all painting, installations, and detailing have been completed and you’re effectively ready to move in.

 

While the amount of finance required will be agreed upon upfront, it is only released in line with a pre-determined timetable. Effectively, the lender will release tranches of financing as each stage of the build is completed. For the investor this has the benefit that interest payments are only made on the portion of loan released – you only pay interest on the amount you owe.

 

What is the next step?

With Professional Home Loans as your trusted mortgage partner, we specialise in navigating the complexities of construction finance. We understand the importance of securing the financing you need to achieve your homeownership dreams, and we’re here to guide you through the process every step of the way.

There is no cost for our service and absolutely no obligation.
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Contact us online or call 1300 55 44 97 today to learn how we can help assist you with a home loan!

Contact us online or call 1300 55 44 97 today to learn how we can answer all your questions about getting a home loan on a Temporary Visa!

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Getting a home loan was really simple with Professional Home Loans.

“We went overseas during settlement and it was not a problem for them, everything went smoothly and I’m writing this from my new home! “

Jack Clancy

- Physio
Well done you made it easy with no BS.

“Couldn’t ask for a better job – until next time (although no time soon, moving was awful). “

Accountant, Mick and Vanessa Renton

- 90% no LMI Brisbane, QLD.
No LMI for building home in Sydney as well as 90% LVR no lmi for investment proerpty off the plan in Newcastle.

“Professional Home Loans has provided us with a very professional service, communicating all the available options to us and in the process he has literally saved us $75k that we would have otherwise paid. They certainly go beyond the call of duty. “

Hamilton (Accountant) & Nyari (Doctor) Sydney

- NSW
Working for QLD Health achieved 90% LVR no LMI at normal rates - From UK. Sunshine Coast, QLD

“We were able to get a loan at a good rate and avoid paying LMI which saved us several thousand dollars that we can now put towards other things. Very helpful and informative about all aspects of the process, not just the loan, which we really appreciated as it made the whole thing a lot easier for us.”

Craig and Louise (Medical Registrars)

- Sunshine Coast QLD
On a contracting basis – she got paid roughly 70% of what she billed.

“We assisted Arlyn with a 90% Mortgage with No Lenders Mortgage Insurance payable so she could buy a house and land package Thanks so much. All credits goes back to you as you helped me make all this happen. I couldn’t thank you enough for the job excellently done. “

Arlyn (Doctor)

- Townsville QLD