The majority of Australians dream of purchasing a plot of land and creating the home of their dreams. A construction loan functions somewhat differently from a loan for purchasing an existing home.
You may borrow a maximum of 95% of the property's value, including the cost of lender mortgage insurance. Many lenders also provide interest-only payments while construction is underway, switching to principal and interest payments after it is finished.
You must have council-approved plans and a fixed price tender from a registered builder to be eligible for a construction loan. As your property is being constructed, the construction loan is drawn down in phases (base, frame, outer brick work, lock up stage, and practical completion). This implies that while development progresses, your monthly mortgage payments gradually rise until they ultimately reach their maximum monthly payback amount
When it comes to construction loans, there are several potential pitfalls. We continue to aid even after the loan is approved. We support you throughout the whole construction process, from the foundation to the finished product.
