Construction Loans

If you are building your own home or investment property, a construction loan may be suitable for you. This loan requires a fixed price building contract from a registered builder. These loans are usually interest only for the period of building and then become principal and interest once building is completed or, subject to negotiation, this interest only term can be continued. A construction loan allows you to draw money as is required whilst building. Further, along with the usual necessary documents that are required when applying for a loan, construction loans also require a “fixed-price building contract” and “council approved plans”.

Advantages

  • Competitive variable interest rates.
  • Facility to draw money when necessary whilst building.
  • Interest only payments during the building period.
  • Additional payments can be made.
  • You only pay interest as the loan is progressively drawn down

Disadvantages

  • Requires a fixed price building contract leaving little room for change whilst building.
  • Some lenders charge a fee for every time you draw money through the building period.
  • Given it is a variable loan; loan repayments will increase if interest rates go up.

Complimentary obligation free consultation

Discuss your specific needs & figure out the best financing route for you. Get in touch to organise your complimentary 60 min session today!

What’s involved in obtaining a loan through Intuitive Finance?

Process begins

Step 1

1 hour initial meet to establish financial and lifestyle goals, discuss fact find document and agree timeline for return of such

Step 2

Submission of fact find

Step 3

Within 5 days of completion of fact find – written strategy submitted to you

Step 4

Within 2 days of agreement to proceed – documents lodged with Institution

Step 5

Within 1 to 3 days of lodgement expect conditional approval

Step 6

Within 2 to 4 days after conditional approval expect unconditional (full) approval

Step 7

Within 2 to 5 days after unconditional approval, expect loan documents to arrive

Step 8

Within 3 to 5 days of  signed Loan Documents submitted, expect Loan settlement
Process ends
Total process generally takes between 4 and 8 weeks

Property Buying Tips And Handy Hints To Successfully Manage Your Finances

Download this handy guide that the team at Intuitive Finance has put together for you.

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