loans.com.au is here to help you get your finance sorted so you can build your home, or complete your renovations. Learn more about how construction loans work, the progressive drawdown process, using a construction loan for major renovations and more below.
With the completion of each stage of your renovation or build, we’ll arrange an inspection of the property and then pay the builder directly for the completed work. Each progress payment is called a drawdown.
The number of drawdowns will depend on the agreement between you, your builders, and your lender. Loan repayments in constructions loan are interest-only but once the entire renovation is completed, the construction loan will revert to principal & interest repayments, unless you request to extend the interest-only period.
Every house is different, but one thing is for sure, building a new home is exciting. Before you start, it’s important to know how much it will cost so you know how much to borrow. Various guidelines exist to help you ask the right questions and calculate a construction budget. To learn more, click here.
Before construction begins, your builder will prepare a contract outlining each construction stage and associated costs. We then progressively drawdown your loan to pay the builders' costs at each stage. Generally, your construction loan will be interest-only repayments while your home is being built. To learn more, click here.
Yes. Whether it's a small property extension or a total knock-down and rebuild, a construction loan lets you draw funds from the loan progressively as your invoices arrive. This ensures you save money, as you only pay interest on the progress payments made until the loan is fully drawn. To learn more, click here.
There are typically five stages of building a house with a construction loan. We will finance the construction at each stage. Stages may differ from state to state, but the most common building stages are foundation, framing and brickwork, lockup, second fix, and completion. To learn more, click here.
A construction loan is for anyone building or renovating a home, instead of buying an established property. They offer cashflow flexibility since they let you progressively drawdown money throughout the construction process, ensuring you only pay interest on the amount you use. To learn more, click here.