Construction Loans

We'll help you fund your new build or renovation with a Construction Loan

If you're considering building a new home, embarking on major home renovations, or buying off the plan, understanding Construction Loans is essential. At Newstone Finance, we specialise in helping clients access Construction Loan options from banks and lenders across Australia. These loans are designed to make financing your building project as straightforward as possible, no matter where you are in the country. Whether you're planning to demolish an existing property or build on suitable land, it's crucial to have a financial plan in place. Let us guide you through this process with our expertise.

Construction Loans differ from standard home loans in several key ways. When applying for a loan, you'll find that Construction Loans offer a streamlined application process tailored to the unique needs of building projects. One of the main features is the progressive drawdown system. This means you receive funds in instalments, known as progress payments, which align with various stages of the project. You'll only be charged interest on the amount drawn down, which can be beneficial as it helps manage costs more effectively. Additionally, interest-only repayment options are available during construction, allowing financial flexibility until the project is complete.

When you access Construction Loan options from banks and lenders across Australia, you'll also deal with specific requirements such as council plans and permits. It's vital to understand these council regulations and restrictions to ensure your project complies with local laws. You'll also need to consider factors like the ideal location and price range for your new build. This is where Newstone Finance can assist by offering guidance on development applications and other necessary documentation. Furthermore, our experts can help you navigate Out of Contract Items not included in standard agreements.

Managing construction milestones is another critical aspect of these loans. A Progressive Payment Schedule is typically set up to ensure funds are disbursed effectively at each stage. For example, you might need to pay sub-contractors like plumbers and electricians as work progresses. An 'as if complete' valuation is often required to assess the property's future worth once construction is finished. This valuation helps determine the final loan amount and ensure that all construction costs, including additional payments for any unforeseen expenses, are covered.

Choosing to commence building within a set period from the Disclosure Date is often a condition of Construction Loans. This ensures that projects start promptly and reduce financial risks associated with delays. If you're buying off the plan or planning a new build, it's important to make a plan that includes all aspects of construction—right from selecting suitable land to preparing for potential council restrictions. At Newstone Finance, we provide insights into managing these aspects efficiently.

To facilitate your journey, we encourage you to contact our team for personalised advice and support. Our goal is to help you understand the intricacies of Construction Loans and utilise them effectively for your building projects. With our experience and knowledge, we make it easier for you to handle everything from Progressive Drawing Fees to achieving construction milestones.

Trust Newstone Finance to guide you through the process of securing a Construction Loan tailored to your needs. Our expertise ensures that you're well-equipped to manage your project from start to finish, providing peace of mind as you work towards building your dream home or undertaking major renovations. Reach out today to explore how we can support your financial journey with solutions that fit your unique requirements.