Construction Home Loans

Your crash course in loans done differently

Funding your future

So, you’re already taking a filter-perfect pic in front of the ‘sold’ sign on your block of land … then there’s the housewarming party to plan, but not before you hack Kmart homewares (or is it West Elm?) And then you remember, you need the cash – and to actually understand where it comes from. Enter…construction loans.

They’re a bit different than your average established home loan, but with a specialist smartie by your side you’ll be safe as houses (see what we did there?).

What’s so different about construction loans?

In the finance world, they call construction loans ‘complex lending’, but don’t let that put you off – in this case, complex kinda just means ‘different’.

Here’s what’s so unique about them:

  • There’s more people involved – land agent, broker, builder, sales rep, settlement agent. It’s like the boy band you never asked for.
  • You’ll have interest-only repayments during the construction period. Once your get your keys, things ramp up a little.
  • You’ll make a progress payment at a few stages as required (rather than a lump sum). Kinda like the Russian Doll of home loans. More on this in the next section, smartie.

While other finance peeps tend to avoid these loans like Ben Simmons avoids the three-point line, our in-house finance smarties are construction loan nerds. That means, Loan Co will take care of the dry paperwork stuff for you (it’s fun for them, we promise), and we’ll make sure the building process is running smoothly behind the scenes.

Construction Loans - Whats different
Construction Home Loans - Structure

Tell me more about this structure you speak of

Your builder (that’s us) will submit progress payment requests during your build. This increases your loan amount as you go. So, rather than getting the whole shebang upfront, it builds as you do.

Here’s the five stages:


Slab – The first milestone! This is when the foundation slab is measured and poured. 20% funds required – check.


Plate Height – Once the home reaches ‘plate high’, all the main jobs get done: the roof frame is built, electricians install electrical tubing and wiring, and plumbers install water services. 20% funds required – check.


Roof Cover -Raise the roof! And by that, we mean a carpenter will build your roof. 30% of funds needed – check.


Lock-up – Your house becomes a functional home, with windows and doors and everything! 20% funds required – check.


PCI – The finishing touch. As a homeowner (officially adulting) you’ll go through the house with a site manager and point out anything that needs some extra love before handover. 10% funds needed – checkmate.


Okay, that’s a lot of information to process. Like that time you tried to read your car manual. But dw, we got you; that housewarming party isn’t that far off. Promise.

It’s time to find out if you qualify for a new pad!

Give us your info and our finance smarties will run the numbers and let you know if you qualify for a construction home loan.

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    *Finance provided by Harrisdale Pty Ltd trading as The Loan Company ABN 59 088 462 140 (Australian Credit Licence Number 386355). Lender credit criteria, terms and conditions, fees and charges apply. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. BCN 10805 – Ventura Home Group Pty Ltd.
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FAQ’s

Here’s a few As to some Qs you may have.

What is a construction loan?

A construction loan is a loan that gives home builders (you) the cash moneyz to build a new home (rather than an established property). Unlike a regular home loan, your builder submits progress payments at different stages of the build, increasing the loan amount as you go. This means the loan slowly builds as your home does. Wanna know more? You know where to find us.

How do I qualify for a construction loan?

Get in touch and we can assess your individual situation and create the right finance product for you. It’s always best to get the info that’s personalised to you, because money is like super personal, right?

Is a construction loan harder to get than a normal home loan?

It’s certainly a longer process, and there’s more work involved behind the scenes but that doesn’t mean it’s harder for you get your mitts on. Plus, it could be the perfect loan for you, so let’s chit chat.