| |
About Construction Loans |
|
| The feature of a Construction Loan involves a number of stages. |
- Flooring Stage (during the concrete or timber flooring).
- Framework Stage (during the development of framework).
- Lock up Stage (windows, doors, walls).
- Fit Out Stage (bathrooms, kitchens).
- Completion Stage (completion of the property).
|
| How Construction Loans work |
- During the construction of the property, the structure of
the loan will feature as an interest only repayment method.
- Payments to your builder will be conducted at the end of
each stage, which is when invoices must be provided.
- At the end of each stage, a valuation will be conducted.
- On completion of the property, the repayment structure will
change to a flexible home loan.
- On completion, a final valuation will determine the value
of the property.
|
| How do I qualify for a Construction Loan? |
| To qualify for a Construction Loan, it is mandatory that
you provide council approved plans and a fixed price tender
from a qualified registered builder. During the construction
of the property, a copy of the builders insurance must be valid. |
| Construction Tips |
- Find a suitable area
- Visit a number of display homes for ideas and obtain any
information.
- Gather at least three or more quotes.
- Compare the quotes.
- Contact the Licensing Authority to check for any claims
against the builder's license number.
- Evaluate past constructions that the builder might have completed.
- Speak with your solicitor before entering a contract with
the builder.
- If you are unclear of any details, please ask your builder
to explain these elements.
|
| Please note: Information that is contained on the web
site should be used as a guideline only. You should seek advice
from professional financial, legal and real estate specialists
before purchasing a property and/or applying for a loan. |
