Building your dream home? Let's get the finance sorted.
Building a home comes with a few more moving parts than buying an established property, and your finance is no different.
Whether you're building your first home, creating your forever home or planning a knockdown rebuild, EB Finance Collective can help you understand how construction loans work, compare your lending options and manage the finance process from application through to the final progress payment.
We'll be there throughout the build, working with you, your lender and the other professionals involved to help keep the finance side moving.
Construction Loans
Construction finance, without adding to the build overwhelm
A construction loan works differently to a standard home loan. Rather than receiving the full loan amount at settlement, funds are generally released progressively as your builder completes different stages of construction.
These are known as progress payments, and they're one of the reasons having the right construction finance in place from the beginning matters.
We can help with finance for:
Building a new home
House and land packages
Knockdown rebuilds
Major renovations and extensions
First home buyers building their first property
Investment property construction
We'll help you understand the lending requirements, what you'll need before applying and how the construction loan process works before the build gets underway.
Your Construction Loan Journey
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We'll start by understanding what you're planning to build, your financial position and your overall budget. We'll assess your borrowing capacity and help you understand how much you may be able to borrow before you commit to your build.
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Construction loan applications usually require a little more documentation than a standard home loan. Depending on your lender and project, this may include your building contract, plans, specifications and relevant quotes.
We'll let you know what's required and help you get everything ready for your application.
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We'll compare construction loans across a range of lenders, considering interest rates, loan features, lender requirements and how progress payments are managed.
We'll talk you through the available options and help you understand what they mean for your build.
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Once you've chosen your preferred loan, we'll prepare and manage your construction loan application and work directly with the lender throughout the approval process.
We'll keep you updated along the way so you know exactly where things are at before construction begins.
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As your builder reaches each agreed stage of construction, they'll generally issue an invoice or progress payment request.
Your lender will release funds in stages in line with the construction loan requirements, and we'll be here to help you navigate the process and answer questions along the way.
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Once construction is complete and the final payment has been made, your construction loan will generally transition into the agreed home loan structure.
Then comes the part you've been waiting for: keys, moving boxes and finally getting to enjoy the home you've spent months watching come to life. 🎉
Frequently Asked Questions
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A construction loan is a type of home loan designed for people building a new home or completing major renovations.
Unlike a standard home loan, construction loans are generally funded in stages, with payments made to your builder as different stages of the build are completed. This process is known as progress payments.
We'll explain how construction lending works, what to expect throughout the process and help you understand the lending options that may be available based on your circumstances 🤍 -
Rather than receiving the full loan amount upfront, a construction loan is generally released in stages as your build progresses.
Each stage of the build is typically completed and verified before the lender releases the next payment to your builder. The number and timing of these payments can vary depending on your building contract and the lender's requirements.
We'll guide you through the process and explain how progress payments work, so you know what to expect before construction begins 🌸 -
In many cases, yes.
Depending on your circumstances and the lender's requirements, it may be possible to finance both the land purchase and construction under one loan.
We'll explain the options available, how the lending process works and what may be required before construction can commence. -
The deposit required will depend on your financial circumstances, the lender's lending criteria and the overall cost of your land and build.
Some borrowers may also be able to use equity in an existing property, subject to lender assessment and approval.
During your Strategy Session, we'll explain the deposit requirements that may apply to your circumstances and help you understand the upfront costs involved 🤍
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Repayments during construction will depend on your loan structure and the amount that has been drawn down at each stage of the build.
As progress payments are made, your repayments may change throughout the construction period.
We'll explain how repayments generally work during construction and make sure you understand what to expect before your loan proceeds 🌸 -
Building projects don't always go exactly to plan, and sometimes costs can change along the way.
If this happens, it doesn't necessarily mean your project can't continue. Depending on the increase, your circumstances and your lender's requirements, additional lending assessment or documentation may be required.
If your build changes, we'll help you understand what this means from a lending perspective, explain the process and work closely with your lender to help navigate the next steps where possible 🌸 -
Approval timeframes vary depending on your circumstances, the lender's requirements and whether all supporting documents such as building contracts and plans have been provided.
We'll guide you through the application process, let you know what's required at each stage and keep you updated as your application progresses.
Ready to get your build moving?
Whether you've already found your builder or you're still working out what's possible, getting your finance sorted early can make the building process a whole lot smoother.
We'll help you understand your borrowing position, compare construction loan options and guide you through the finance side of your build from application to final progress payment.