Looking for a construction loan? We can help.
If you plan to build your dream home, you need a construction loan. This usually involves progressive drawdown payments to your builder as each major stage of your home construction work is successfully completed. Repayments on a construction loan are usually interest-only during the building process. Interest is only charged as funds are progressively drawn-down.
Once your home building process is complete, your construction loan will automatically revert to a standard home loan with principal and interest repayments. Construction loans are available for both registered builders and owner-builders. You have up to 12 months to complete your home’s construction after the settlement of your land. Our specialist mortgage consultants at Smooth Home Loans will come to you and tailor a construction loan to meet your building needs and budget.
Our construction loan offers:
- Tailored construction financing
- Progressive drawdown payments
- Interest-only repayments
- Transition to standard home loan
- Flexibility for builders & owner-builders
- 12-month construction period
- Personalised consultations
Expert Construction Loan - Smooth Home Loans
Smooth Home Loans understands the complexity of commercial property and advises consulting our brokers to explore diverse financing options and lender needs. Collaborating with your accountant, we tailor the best solution for you.
Construction loans involve progressive payments to builders during construction stages with interest-only repayments, transitioning to a standard home loan post-construction.
We aim to provide loan approvals within 2-3 days, subject to individual circumstances and the submission of correct documentation. Please note, approval time varies for each applicant, and we recommend having all necessary documents ready at the application stage for a smoother process.
To pay the builder, we conduct property inspections upon completion of each stage of your renovation or build, then proceed to make direct payments to the builder for the finished work. These payments, known as drawdowns, occur according to the agreed terms among you, the builder, and the lender.
The number of drawdowns is contingent upon your arrangement. During the construction loan phase, repayments are interest-only. Once the renovation/build is complete, the loan transitions to principal & interest repayments, unless an extension for the interest-only period is requested.
To apply for a construction loan some of the initial documents required are:
- Completed land purchase
- Selected a licensed Master Builder
- Building plans
- Copy of the fixed HIA/MBA Building contract
Why choose Smooth Home Loans?
Australian based
Seek support from our friendly Australian-based lending specialists.
Flexible options
Exploring offset savings or extra repayments? Our diverse loan features fit your needs.
Low interest rates
As an online lender with lower overheads, we pass on savings to you, our customers.