Construction Loan

We cater for all types of Construction Loans – whether it’s your family home being constructed or a block of apartments being developed, we have the experience and knowledge to ensure your project is a success.

Once all the council approvals and builders contacts are in place the lender will generally make payments to the builder in stages – this is usually a 5 stage process, handing over progress payments once each milestone is met. You the borrower will only pay interest on the funds that are drawn at that particular time.

The lender usually completes an inspection before releasing the final progress payment to make sure your project is up to scratch, but the lender in just about all cases will be more stringent on larger projects such as unit developments.

For a basic house construction the lender will generally lend the borrower a percentage of the land value and the hard construction costs, but this can be increased if significant value is being added during the project which will increase the end value somewhat – such as a subdivision and build.

Funding for large development loans varies greatly – we have private lenders who will in theory lend 100% of the construction costs using the Gross Realisable Valuation (GRV) method. This method takes into account the end value of the project instead of the hard costs of construction, which enables the lender to actually lend the developer 100% of constructions costs.

To discuss your construction options please contact us on +61 2 9981 5385 or submit an Online Enquiry.