We'll help you fund your new build or renovation
Building your dream home or undertaking major home renovations in Australia can be an exciting yet complex journey. At Lendology, we specialise in helping Australians, from first-time buyers to seasoned investors, access Construction Loan options from banks and lenders across Australia. Construction loans are tailored to finance your project’s various stages, making it essential to understand how they work and what you need to consider when applying.
A Construction Loan differs from a standard mortgage as it allows for progressive drawdowns, meaning funds are released in instalments at different stages of your project. This feature ensures that you only charge interest on the amount drawn down, keeping your costs under control. During the building process, interest-only repayment options can further ease financial pressure. Whether you're planning to demolish an existing property for a new build or embark on major home renovations, having a well-structured Progressive Payment Schedule is crucial. This schedule aligns with construction milestones, allowing you to make progress payments efficiently to sub-contractors like plumbers and electricians. It’s important to note that these payments are based on an ‘as if complete’ valuation of the project, ensuring funds are available as the build progresses.
When applying for a loan, it’s vital to understand the requirements and process involved. Our streamlined application process helps you navigate council plans and permits smoothly, ensuring compliance with council regulations and restrictions. Before you commence building within a set period from the Disclosure Date, you'll need a development application and possibly a valuation for the suitable land. Planning is key; make a plan for your ideal location within your price range, considering potential Out of Contract Items not included in your budget.
For those buying off the plan, understanding the terms of additional payments and the Progressive Drawing Fee is crucial. These fees often relate to the construction milestones and various stages of the project, so it's important to factor them into your budget early on. Moreover, some projects may require paying sub-contractors promptly to keep the build on track. Engaging a registered builder ensures that all work is completed to a high standard and meets required council regulations.
Choosing the right loan amount involves evaluating your financial situation and project needs. Lendology assists in determining a suitable loan amount by considering factors such as interest rates and potential future expenses. With our expertise, you can confidently explore different options and find a solution that fits your needs.
By understanding how progressive drawdowns work and what interest-only repayment options are available, you can manage your finances more effectively during construction. Our team supports you through every step, ensuring that your journey from planning to completion is seamless.
Embarking on a construction project can be daunting, but with Lendology's expertise in Construction Loans, we simplify the process for you. Whether you're building anew or renovating, our comprehensive service ensures you’re well-equipped to tackle each phase confidently. Contact us today to start your journey towards creating the perfect home in your ideal location.
