Construction loan

If you are building a new home, then you need a construction loan:

Construction loans save you time and moneyIf you're building a new home, then you need to have your construction loan finance approval in principle first, because your builder will want to have the evidence of finance approval before they will get the contracts up for you to sign. Builders simply can't afford to waste time doing building contracts that never go to the construction department.
This important fact is often over looked by new home buyers needing a construction loan who think that any builder will given then a contract before they have decided to build a home. No construction loan finance in place, no housing contract.

The building contract comes after an initial and secondary deposit is paid.

Before you can get a construction loan, the lender also wants to see your building contract. So you will have to pay a deposit to get this. The amount differs between builders and can be as low as $1,000, and as high as $4,500. If you are being asked for more than $2,500, then contact Rick Adlam and he will see if he can get it down for you.

Save interest with a Construction loan.

Because you pay interest only on the drawn down amount, a construction loan is a time and money saver, that enables you to get the ball rolling and still pay rent whilst your home loan starts small and gradually grows.

Our Construction Loan is ideal if you are:

You can have up to 7 stages of progress payments with a construction loan

Between 5 and 7 progress payments to the home builder are common with construction loans. So, if money is tight you need to choose a construction loan with more progress payments and ensure you are building with a builder who completes a home quickly. The reason for this is that lengthy building  times mean a higher interest repayment over the building period. Check with past clients about building times of your builder. It can save you a chunk of money in construction loan interest.