Construction Loans

A Construction Loan is generally drawn down (as progress payments) in stages as the builder reached the different stages as stipulated on the Building Contract

The lender would also require the following documents for you and your registered builder, when applying for a construction loan facility

• A 'Fixed Price' building Contract with a registered builder.
• The Council approved plans for the proposed house,
• The house specifications documents etc
• Proof of the Builder's current building insurance
• In the case of a House & Land package, the purchase contract for the block of land

There are usually 5 stages of draw down or progress payments made, these stages are generally:

1. The Base Stage (i.e. when the concrete slab is laid)
2. The Frame Stage (i.e. when the frame work or walls are up)
3. The Lock-up Stage (i.e. when the roof, doors and windows are in place)
4. The Fit-out Stage (i.e. when the house has been fitted out with appliances)
5. The Completion Stage (i.e. the house has been completed and is ready for you to move in)

Most Lender only require interest payments on the loan during the construction phase.

Then after completion the loan would revert to a standard variable home loan (P & I) repayment loan, which you have the option ( by speaking to us) of choosing between different loan types, including Spilt Loan, of Fix loans etc etc