Construction Finance

Building a new home is very exciting but the financing side of the build can get quite tricky and many do not know where to start when it comes to organizing finance as each lender has their own policy for obtaining a construction loan for a new build or a turnkey property.

We’ll guide you through the entire process whether you are building your first home or your property investment; good quality advice can go a long way. Instead of dealing with the nitty-gritty side of financing, you can focus and look forward to designing your new home.

TURN-KEY

Turn-key properties are new builds which do not require a construction loan. Aside from the deposit you only need to pay for the balance when you can ‘turn the key and move in’ on settlement date. However, different lenders have different criteria around the documentation required from the builders when it comes settlement time. It’s important to have the contract reviewed from a financing perspective to make sure the right lender is chosen.

We’ll guide you through the entire process whether you are building your first home or your property investment; good quality advice can go a long way. Instead of dealing with the nitty-gritty side of financing, you can focus and look forward to designing your new home.

FIXED PRICE CONTRACT

Also known as House & Land Packages. This is the most common method to buy a new build property. The developer or builder will offer a fixed price contract to complete the dwelling. Unfortunately, not all builders have a bank-friendly contract. Builders want to get paid for the work they get done and sometimes it can seem like the banks are reluctant to be helpful. The reality is that they are bound to their credit policy.

Every lender is different so it’s important to have the contract reviewed and the conditions negotiated with the lender so that financing the build doesn’t become a stressful process.

COST & QUOTES

Also known as ‘labour only’. Building a house from scratch is reserved for the experienced. Bank’s don’t advertise this as an option as it’s exclusively a case by case project. They expect a detailed breakdown of the cost of the project and invoices and every payment is thoroughly checked on each drawdown. You may need to hire a Quantity Surveyor or Project Manager for this project and we’ll likely need to charge for time as the commissions earned from the lender will be insufficient to cover the work involved.

HOW WE CAN HELP

  • Establish a budget to build your dream home
  • Match you with the right lender for a pre-approval based on your circumstances
  • Review the building contract
  • Manage the loan drawdown process
  • Loan Structure Recommendation and loan maintenance service including fixed rate rollovers
  • Building a property?
    Let us sort your financing,
    so you can focus on designing your dream home.

    Send us an enquiry or request a callback by filling in the form below and we will be in touch within 24 hours.