Expert Services to Layout & Shape Tailored Construction Loans

We appreciate that every home is a very personal and individual space, and every homeowner has their own personal financial objectives and aspirations. We tailor and structure construction financing to meet those individual requirements with competitive rates to ensure repayments work with the individual’s budget.

The most competitive rates are sourced from across our extensive 80+ lender panel which includes the major banks, other banks and many non-bank lenders. Providing our specialists with huge market coverage to identify the right lender and the best rates.

Building or renovating a home can be a very stressful experience. We ease the stress by handling every aspect of the finance. Each customer is assigned their own broker to ensure individual and personal service and a customised building loan solution.

• Competitive building loan interest rates.
• Best rates from 80+ lenders.
• Personalised, individual service and solutions.

Get started by submitting a request for a free finance quote.

To be eligible for construction financing, homeowners will need to satisfy individual lender criteria for credit scores and financial position, down payments and LVR – loan to value ratio. In addition, the project plans and builder contracts must also be provided.

A minimum downpayment of 5% of the project’s value is required if Lender Mortgage Insurance is held by the homeowner. A 50% downpayment is required where the building is being carried out by an owner builder.

The LVR varies up to 95% across the home lending market. Equity in the property to be renovated or the current home may be used to secure more amenable conditions. The lender will usually have a valuation by their own valuer for the project.

With variations in criteria across the lending market, your Jade broker will be assisting you by selecting the lender with the criteria best in line with your scenario.

To apply for a building loan, homeowners will require a range of documentation on their project. The plans approved by Council or currently in front of Council will be required. The builder’s contract with any variations is required. A Quantity Surveyor’s Report is required where the contract exceeds $1m.

All this documentation is required for pre-approval. Prior to settlement, final approval and the funds being available, the Council-approved plans, builder’s Public Liability and Builder’s Risk Insurance certificates will need to be provided to the lender. The builder’s contract should detail the completion stages. At these stages, some lenders may arrange inspections and valuations.

Applying for a building loan is more complex than applying for a standard home mortgage. With help from our specialists, the process can be more streamlined, less complicated and less stressful.

Speak with us when you start planning your build so we can guide and direct you from stage one.

• Expert guidance with application process.
• Lenders selected to match applicant’s profile.
• Specialist assistance from pre-approval through to settlement.

Varying options are available for home building, land and house packages and for renovations. With land and house packages, the entire package may be covered with the one loan. Or where the land and house build are separate purchases, separate loans may be required.

With major renovations, if the homeowner holds acceptable equity in the home, a standard mortgage may be appropriate. Owner-builder loans require a larger downpayment than for licensed builder constructions.

The credit options for building finance include interest-only for the early stages of the build reverting to interest and principal and interest and principal loans for the complete project. Variable interest rates typically apply to building finance.

With drawdown loans, funds are made available when progress payments are scheduled by the builder. The builder provides the invoices to have the funds released. Repayment options include monthly schedules or schedules synchronised with the stages of building completion.

Where construction comes in under budget and below the total amount of the finance, interest is only charged on the funds utilised. The building plans can also affect the loan options. With such a range of options available, homeowners can benefit from a pre-build discussion with our experts to confirm the best option for them and assist with budgeting.

• Interest-only and interest and principal building loans.
• Variable interest rate construction financing.
• Drawdown loans, flexible repayment schedules.

Contact us to discuss the best loan options for your planned project.

Building your ideal home that is designed for the way you live now and into the future, can present not only the realisation of a dream, but the opportunity to optimise sustainable and energy-saving features. With financing required for the build, attention to planning and budgeting can contribute to maximising savings with the loan.

Consider the equity you may have in your existing home or another property to reduce the down payment requirements and potentially secure a lower interest rate. Maintaining a good credit score is critical to being offered the best rates.

Consider a drawdown loan to reduce the total interest payable as interest is only charged on the funding utilised. Plan a repayment structure that works with your income and progress payments to allow for better budgeting.

Source a number of building quotes and check the references of builders for quality, integrity and reliability. Quotes can vary especially if extras and variations are included. When requesting a loan amount, allow for contingencies to avoid being caught out in the latter stages of the build.

Weather can impact building projects and that may mean paying interest on the loan for a longer period. Allow for this possibility in your personal budgeting. Construction financing can be complex and confusing. Taking advantage of our home financing specialists can deliver significant benefits in assisting with the available options and securing better rates and conditions.

• Plan design to suit budget.
• Allow for contingencies.
• Use specialist home building finance services.

Start with a Free Finance Quote Request.

Building finance is typically arranged as a drawdown loan. This means that the funds for the entire project are approved, but only the amounts required at each completion stage are made available. This can result in less total interest charged.

When the builder reaches a designated completion stage, the progress payment is requested.

The standard completion stages include:

• Laying slab or foundations after completing groundworks.
• Frame and partial brickwork, roof, window installation.
• Lock up.
• First fitout.
• Final completion.

Our brokers can work to structuring a repayment schedule in line with completion stages. Contact us for further information.

The inspections and appraisals play an important role in the construction loan process.

Lenders will typically assign their valuers to appraise projects to ensure criteria is met.

At the completion stages, additional inspections may also be requested by lenders prior to funding being released for progress payments.

Contact us for more information.