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Residential Home Construction

  • Maximum LVR up to 95%

  • Fixed or Variable Rate.

Serviceability
  • The first step of the loan will be determining the amount of money that you can afford to borrow based on your current income and expenses.  

LVR
  • The Lender will then complete a valuation by reviewing your building plans and contract, and determining the market value of the property when construction is complete.  Majority of Lenders will lend between 90-95% of final valuation.

Progress Payments 
  • A Residential Construction Loan is drawn down in stages, known as progress payments and will generally consist of 1 land payment and 5 construction payments.

  1. Land Purchase.

  2. Deposit 

  3. Pad Down. (Concrete Pad Poured)

  4. Roof Height.

  5. Lock Up.

  6. Final Payment.

Construction Loan Documentation

​Additional documentation that you will need to have available to complete your loan application.

  • Signed Building Contract., including plans, specifications and fixed costs.

  • Contracts or quotes for any work not covered within the building contract.  Thic could include site works, landscaping, swimming pools as examples.

  • Builders Insurance.  This is generally included within the building contract.  Always check that the insurance has been put in place by your builder.

On completion of the construction of your residential property, your loan will revert to the standard variable rate home loan of that lender.  

 

Your broker should always review your loan at this stage to determine both suitability and whether the interest rates are competitive.

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