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Construction Loans
Whether you're building a new home or renovating your current home, we can help you secure fast funding to make the job easier.
Building a new home or renovating your current home takes time, money, and sometimes...a lot of patience.
Construction finance is different from traditional home loans. It's also important to remember that not all banks offer construction loans, such as smaller fintech and online lenders. There's a lot to consider before beginning the process of securing a construction loan. Our team have extensive experience in securing construction loans tailored to your project.
Builder Invoices at Each Stage of Construction
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There are typically five stages of construction, known as slab (or base), frame, enclosed (or lock-up), fixing, and practical completion. As each stage is completed, the builder will issue an invoice; also known as a progress claim.
The Bank Pays the Progress Payment Claim
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When the invoice is received, you have to provide your bank with authority to pay the claim. The bank will complete valuations at certain stages of the construction process, to ensure you're only paying for work that has been completed.
You Make Interest Only Repayments
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As each progress payment is made to the builder, you'll only need to pay the interest on your construction loan until the project is completed. Before the final progress claim is paid, you'll need to provide a copy of your insurance or Certificate of Currency, listing the bank as an interested party.
Construction is Complete
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When construction is completed, the bank will conduct a final valuation of the property to ensure it's been built as per the plans.