Construction loans can be a smart way to build or renovate.

These loans are designed to help keep your cash-flow steady while you construct or renovate your home.

Help me build

A loan with progressive payments can make construction simple.

Building or renovating your own home is a challenge, but it’s one that can bring big rewards. At iConnect Financial we’ll help you find the right loan to suit your project, so you can stop worrying about the money and start choosing paint colours.

Many lenders offer construction loans and each will be slightly different. In general, you can expect to be able to draw down on the loan only as you need the funds, which saves you interest. You can also expect to make interest only repayments until your project is completed, keeping your repayment costs down while you’re paying to live somewhere else.

How construction loans work.

Construction loans are simple once they’re set up, keeping payments to a minimum.

  • Your builder will require payments to be made when each stage is completed, such as slab, roof, lock-up etc.
  • You only pay interest on the amount you’ve already paid to the builder, so your interest repayments will increase in stages as you get closer to completion.
  • You will be required to contribute funds from the deposit before your lender will allow a payment to be made from the loan.
  • Most lenders will allow you to refinance an existing land loan when you apply for the construction loan.
  • You should be able to borrow up to 95% of the value, but if that’s the case then Lenders Mortgage Insurance will apply.

 

Finding the right construction loan for your needs starts with a free consultation with an iConnect broker. Simply fill out the form below and we’ll do all the legwork for you.

Let us help you get the loan you need for your new build or renovation.

Construction doesn’t need to be complicated. We’ll talk you through the available loans and show you which ones would be right for your situation. For a FREE consultation, simply fill in your details below and we’ll get in touch with you soon.