Construction Loans
The right finance to build, renovate or extend your home!
Whether you are looking to build your dream home, renovate, extend your existing home, or build an investment property, some of the Best Mortgage Brokers in Adelaide are here to help, supporting and empowering you with expert advice every step of the way!
Finding the right construction loan to support your dreams and goals!
Providing you with great advice along the way, our team will be there to support you and ensure everything runs smoothly.
As your trusted finance partners, we are here to work with your builder and the bank to ensure all progress payments of your construction loan are made on time. We will process these right after we receive confirmation that you are happy with the builder’s work quality delivered at each milestone payment date, making the process smooth and stress-free.
Following the completion of your construction project, our team can also help by ordering a valuation of your build and undertaking a review of your construction loan, to determine whether it is still a good option for you. This will help us determine whether refinancing your loan to a different lender or product could be advantageous to you, helping us support you in reaching your financial goals sooner!
We are here to help you find a construction loan that provides the right balance of features and flexibility, whilst being as cost-effective as possible.
Value beyond your Construction Loan
Discover what you can expect from your dedicated Rise High Broker
Understanding Construction Loans
Explore what they are, how they work and what they can be used for
Applying for a Construction Loan
Deposits, the right structure, working out how much you can borrow, and more!
Choosing a broker for your construction loan
Your Rise High Mortgage broker will take the time to understand your personal situation, goals and priorities (both short and long-term).
We will then review all lenders on our extensive panel (with over 70 lenders!), look at their credit policies, application criteria, fees and charges (including Lenders Mortgage Insurance (LMI), Stamp Duty and potential refinance costs) and spend time negotiating with them on your behalf to get the best outcome with each potential lender.
To help you make your decision on which construction loan and lender are right for you, we will present you with a detailed loan comparison table that compares the top lender options best suited specifically to your needs.
When we meet with you, we will go through your personalised loan comparison report in detail, answering any questions you may have so that you can feel excited and confident about your decision.
Because we would have already undertaken extensive analysis work prior to providing you with the right advice, you can rest confident that the lender options presented to you are all viable options that would result in a positive outcome, enabling you to kickstart this exciting construction journey!
What are construction loans?
Construction loans are a type of finance specifically designed for people looking to build or renovate a home.Whilst construction loans can be similar to home loans, there are important differences you may want to be aware of.
With traditional home loans, the full loan balance approved is provided by the bank at settlement of the loan. However, in the case of construction loans, the loan balance starts at $0 and progressively increases as the builder achieves construction milestones in the contract. These are then paid out in the form of progress payments.
Your construction loan balance will continue to grow as construction progresses, until it reaches the final loan amount approved by the bank.
During this process, you will only need to make interest repayments based on the actual loan balance at the time, meaning your interest expense will only grow over the course of your construction as your loan balance grows.
Most lenders will charge a construction progress payment fee for construction loans, which we will include (with any other fees payable) in your detailed loan comparison table. This way you can rest assured there will be no unwanted surprises!
Some of the benefits construction loans provide include:
- Flexible terms that adapt to the needs of your project
- Lower monthly obligations during construction as you pay interest only
- No full repayments until your project is completed
Important considerations to watch out for include:
- Potentially higher interest rates and fees than a standard home loan
- A review of your construction loan will be required once the build is complete, as you may be eligible for a more competitive home loan at that point!
Applying for a Construction Loan
Applying for a Construction loan with us is easy!
At the very beginning of the process your dedicated Rise High broker will send you a list of documents for you to upload into your personal portal.
These documents will give us an understanding of your current financial position and enable us to calculate how much you can afford to borrow, your deposit requirements (if any), and work out the best structure for your construction loan.
We will work with your builder of choice to obtain your Build Pack, which includes your building contract, building plans, selections and specifications. This build pack will be provided to the bank’s valuer who will then use it to determine what the value of your home will be once the build is complete, enabling the bank to determine how much they are willing to lend for your construction project.
Ultimately, we will develop a clear plan and strategy that can support your current lifestyle, enabling you to achieve your future dreams and goals.
Our team at Rise High will be here to project manage all parties involved, ensuring the construction process is as easy and stress-free for you as possible!
Beyond your construction loan:
Other ways we can help!
At Rise High we understand your needs, dreams and goals are likely to change throughout time. Besides helping you secure the right construction loan for your needs, our team can also help you to:
- Refinance and save money on your current loan
- Make the most out of debt consolidation loans to pay off existing debt sooner
- Prepare to convert your existing home into an investment property and set up the right investment loan structure
Looking for a finance partner who will keep your best interests at heart and is someone you can trust?
Explore some of our Tools and Calculators
Borrowing Capacity Calculator
Loan Repayment Calculator
Other Frequently Asked Construction Loan Questions:
Still looking for an answer? Here are some common questions you might want to explore when looking for the right construction loan:
Ready to find out more?
Our award-winning brokers are always here to support you in achieving your financial goals. With a fee-free service, complimentary loan reviews that save you money, and regular updates and communications, you can always be confident to have a lifelong financial partner that will keep your best interests at heart!