New Home Construction Loans
So you would like to buy some land and build a house?
This is not quite as simple as the straightforward buying an existing property. You have to deal with builders, developers, architects, and banks have special rules for payment schedules.
We understand how progress payments work, and can help you through the process of managing the loan finances associated with a New Home Construction.
Generally banks will pay monies to the builder/developer according to the schedule:
- 15% @ slab
- 25% @ frame
- 25% @ externals
- 20% @ lockup
- 15% @ complete
At each stage in the schedule, there will be a drawdown against the loan. Interest is paid only on what is drawn down, which means your interest costs will vary as work progresses. We will help you understand and calculate the costs of this through the home contruction process.