Australia’s mortgage lenders are not all the same: Prospect Finance Group invites you to compare before you choose. We offer a free construction loan consultation where we can listen to your requirements and run a preliminary assessment to find you a flexible construction loan that meets your needs and objectives.
What is a Construction Loan?
Construction loan also known as building loan is basically a home loan which is paid to your builder in multiple progress payments as your builder completes each of the following building stages:
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- Base Stage
- Frame Stage
- Lock up stage
- Fixing Stage
- Completion stage or hand over stage
Am I ready to apply for a construction loan?
There are a few things you need to do before you can apply for a Construction Loan.
Organise your builder
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- find a licensed builder and discuss your needs
- sign a fixed-price contract with your prospective builder
- agree on a schedule of progress payments with them.
There are usually 3 types of schedules of progress payments and the type of progress payments could be discussed with the builder and the lender.
Am I ready to build a house?
For many construction or renovation projects, you need to acquire a planning and building permit from your local council to approve your plans and building specifications. This can be organised by your builder/building surveyor.
For more information, give us a call to discuss or request our construction loan pdf guide.
The content on this site is for informational and educational purposes only and is not intended as a substitute for professional credit or financial advice. Always consult with a licensed financial advisor/finance & mortgage professional before making any decisions based on the information you read on this blog.