Building/construction finance
Building dreams
Building your own home has many benefits.
You can customise the home to suit your lifestyle and needs.
For most who embark on building their home, it also gives
a sense of satisfaction, pride and achievement.
Not all lenders will advance a home loan for construction
purposes, so it is important to shop around. Generally, in
addition to the normal credit assessments, lenders will want
to see the following in place before committing to an offer
of finance:
- Architects plans
- Council approval
- Fixed price contract with a builder
- Builder's insurance
Funds for building are released and paid to the builder in stages,
called ‘progress payments’ after the work has been
satisfactorily completed at each stage. The number of progress
payments will depend on the size of the project. The lender
will conduct its own inspections at each of these stages. Read
more.
Tip: When selecting a builder,
ask for references and if possible, inspect previous building
projects that your builder has completed. It’s also
important that they hold the required insurance and belong
to the relevant industry association. Contact your local building
association for information on registered and qualified builders
and tradespeople in your area.
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