SIMPLY MONEY
Construction & Development
If you are building from the ground up, a Construction Loan is the right one for you, with features and benefits specific to the construction process.
What is a Construction Loan?
Construction loans provide funds at different stages of the build, negating the need to draw down the whole loan amount at one time, which would result in you paying interest on money you are not yet ‘using’.
The stages
There are usually six stages to the construction of your new home:
Deposit for the build
Base stage, which is for the slab
Frame stage once the frame is up
Lock-up once roof is on, windows and doors are installed
Fixing once the cabinetry works and painting have been completed
Final stage which is when the house is completed and is ready for Certificate of Occupancy
Things to know
With a construction loan, you will only draw the funds from the total loan needed for each stage. Once one stage is completed, you can access the next portion of the loan. When your home is complete, your loan will convert to a ‘normal’ home loan.
There are varying types of construction loans, each with unique features and benefits, and there will be one that is perfect for you. At first glance, they can be complicated, and your lender will have numerous requirements before approving your loan.
Simply Money will help you decide on the right lender and loan with the right features so you can settle down to the essential and exciting process of creating your touch of paradise.
Still have questions? Ready to apply?
Understanding what you need in a loan and helping you navigate the many options is what we do best. Get in touch with us on
0418 340 485 or, if you prefer, you can email us using the form below. We are here to help!