Construction Loans
Creating your dream home is an exciting journey. It’s your opportunity to design every detail, from the floor plan and finishes to the landscaping and furniture that perfectly complements your vision. However, building your dream home comes with significant costs and financing the project can be one of the biggest challenges Australians face.
If you’ve already invested your savings into purchasing the land, you might wonder: How do I fund the build? How does a construction loan work? What should I know before applying?
What is a Construction Loan?
A construction loan is a type of financing designed specifically for building a property. Unlike standard home loans, construction loans release funds progressively as the construction advances, paying your builder (or yourself if you’re an owner-builder) in stages.
Construction loan share features with traditional home loans such as setup fees, variable or fixed interest rates and lender’s mortgage insurance. One of the key difference is progressive payments.
The 5 Key Stages of Construction
Building a home usually involves five stages. Here’s what each stage entails:
- Slab/Base Stage – Laying the foundation, including plumbing and preparation.
- Frame Stage – Erecting the frame, completing brickwork and installing the roof.
- Lock-Up Stage – Adding external walls, doors and windows to “lock up”.
- Fit-Out/Fixing Stage – Installing internal features like plasterboards, plumbing, electrical wiring and gutters.
- Practical Completion Stage – Interior finishes, plumbing, electrical and site cleanup.
Schedule a Free Consultation
Looking to build your own home and not sure about a construction loan, please submit the form for a obligation free consultation or call us for a face to face chat in Box Hill, Rouse Hill and Riverstone.
At LoanFin, we take pride in helping clients across Australia achieve their property dreams. Whether you’re in Sydney, Melbourne, Adelaide or anywhere else in the country, our team of expert mortgage brokers can guide you through the construction loan process with ease.
