Construction Loans

When building a new home, construction is generally completed in a series of stages. These stages can vary slightly between builders, but they usually include the following:

The site is prepared for construction, which may include clearing, excavation, levelling and setting out the home. Foundations are then installed and the concrete slab is poured, creating the base of the property.

The structural frame of the home is constructed. This typically includes the wall frames, roof structure and other major structural components that begin to give the home its shape.

The external structure is largely completed so the property can be secured. This may include the roof, external walls or brickwork, windows, external doors and other elements required to make the building weather-resistant.

Work moves to the internal areas of the home. This can include plasterboard, internal doors, cabinetry, skirting boards, architraves, electrical fittings, plumbing fixtures and other internal finishes.

The final works are completed and the home is prepared for handover. This may include painting, flooring, appliances, final plumbing and electrical work, inspections and rectification of any outstanding items.

For construction loans, lenders will generally release funds progressively as different stages of the build are completed, rather than providing the entire loan amount upfront. These repayments are generally interest only and are paid by the lender directly to the builder .The exact progress payment stages and requirements can vary depending on the lender and building contract.

Each of these stages will come with their own required documents and checks in order to proceed to the next stage, our team will guide you through the process and requirements which will vary from each bank and lender.