We help Australians looking for a Construction Loan
Building your dream home or embarking on major home renovations can be both exciting and daunting. At Simple Lending, we specialise in helping you access construction loan options from banks and lenders across Australia. Whether you’re planning a new build, buying off the plan, or demolishing an existing property, our streamlined application process ensures you get the financial support you need to commence building within a set period from the Disclosure Date.
When applying for a loan with Simple Lending, one of the first things to consider is the interest rate and loan amount. We work with various lenders to secure competitive interest rates and flexible loan amounts tailored to your needs. Our construction loans operate on a progressive drawdown basis, meaning you only draw down funds as needed for each stage of the project. This structure allows you to only charge interest on the amount drawn down, helping you manage your finances more effectively.
A key feature of our construction loans is the Progressive Payment Schedule. This schedule aligns with the various stages of the project, enabling you to make progressive payments to your registered builder, plumbers, electricians, and other sub-contractors. Payments are typically linked to construction milestones, such as laying the foundation, erecting the framework, and completing the roofing. This ensures everyone gets paid on time and work progresses smoothly. Additionally, some lenders offer interest-only repayment options during the construction phase, providing further financial flexibility.
The ‘as if complete’ valuation is another crucial aspect to consider. This valuation assesses the property's value once all construction and improvements are finished. It helps determine the loan amount you can borrow and ensures that the project remains within budget. Council plans and permits are necessary steps in the process, and being aware of council restrictions and regulations is vital to avoid delays. Our experts can guide you through obtaining council permits and completing development applications to ensure compliance with local laws.
It's also essential to be mindful of Out of Contract Items not included in the initial quote from your builder. These additional payments might cover unexpected costs or upgrades that arise during construction. Proper planning and budgeting can prevent financial surprises down the track. If you're planning significant home improvements rather than a new build, a home improvement loan might be more suitable for your needs.
Once construction begins, funds are released in instalments at various stages of the project. For example, progress payments might be made after completing initial groundwork, framing, and roofing. Each stage must meet specific criteria before funds are released, ensuring quality control. Progressive Drawing Fees may apply with each drawdown, so it's wise to factor these into your budget.
Choosing the right location for your new build is crucial. Consider factors such as suitable land, price range, and any potential council restrictions. A well-thought-out plan will help you navigate these challenges and avoid costly mistakes. If you're demolishing an existing property to rebuild, ensure all necessary permits are in place before commencing work.
At Simple Lending, we understand that every project is unique. We offer personalised advice tailored to your needs, helping you make informed decisions every step of the way. From applying for a loan to managing progress payments and ensuring compliance with council regulations, we’re here to support you throughout your construction journey.
Ready to turn your dream home into reality? Contact Simple Lending today to discuss your construction loan options and take the first step towards building in your ideal location. Our experienced team is here to help you navigate the complexities of construction finance with ease and confidence.
