Construction loans provide the necessary funding to build your dream home or investment property from the ground up. At Intuitive Finance, we offer expert guidance to help you navigate the complexities of construction loans, ensuring you secure the best option for your financial needs.
A construction loan is a type of short-term loan specifically designed to finance the construction of a new home or major renovations to an existing property. Unlike traditional home loans, construction loans provide funds in stages as the construction progresses, ensuring that you only pay interest on the funds as they are drawn down. This type of loan offers flexibility and control over the building process, making it an ideal solution for those looking to create their perfect home from the ground up.
Types of Construction Loans
Progressive Drawdown Loans
A progressive drawdown loan is a common type of construction loan where funds are released in stages throughout the construction process. Payments are typically made at key milestones, such as laying the foundation, framing, and completion of the roof. This method ensures that you only pay interest on the funds as they are drawn down, helping to manage your cash flow during the build.
Controlled Budget: Funds are released in stages, helping you manage your budget effectively.
Interest-Only Payments: Pay interest only on the funds as they are drawn down.
Cash Flow Management: Payments are tied to construction milestones, aiding in cash flow management.
DISADVANTAGES
Complex Process: Requires detailed planning and documentation.
Variable Rates: Interest rates may vary during the construction period.
Higher Initial Costs: May include additional fees and charges compared to standard home loans.
Fixed-Price Contract Loans
A fixed-price contract loan is suitable for those who have a fixed-price contract with their builder. This type of loan provides certainty and control over your budget, as the total cost is agreed upon upfront. Funds are released in stages based on the terms of the contract, ensuring that payments are made according to the progress of the construction.
Budget Certainty: Fixed contract price provides certainty over total costs.
Structured Payments: Funds are released based on contract terms, ensuring payments align with construction progress.
Financial Control: Fixed terms provide greater control over your budget.
DISADVANTAGES
Less Flexibility: Fixed terms may offer less flexibility if unexpected costs arise.
Complex Process: Requires a detailed and agreed-upon contract with the builder.
Potential Higher Costs: Fixed rates might be higher to cover potential risks.
What’s Involved in Obtaining a Loan Through Intuitive Finance?
Initial Meeting
A 1-hour session to establish your financial and lifestyle goals, discuss the fact-finding document, and agree on a timeline for its return.
Fact Finding Submission
We will submit the completed fact-finding document.
Strategy Submission
Within 5 days of receiving the completed fact-finding, a written strategy is submitted to you.
Document Lodgement
Within 2 days of agreeing to proceed, documents are lodged with the institution.
Conditional Approval
Expect conditional approval within 1 to 3 days of lodgement.
Unconditional Approval
Expect unconditional (full) approval within 2 to 4 days after conditional approval.
Loan Documents Arrival
Expect loan documents to arrive within 2 to 5 days after unconditional approval.
Loan Settlement
Expect loan settlement within 3 to 5 days after submitting the signed loan documents.
Find Out if You’re Eligible for a Guarantor Loan
If you’re considering a guarantor loan, our experienced mortgage brokers will guide you through the steps. In a quick initial consultation, we’ll assess your situation, determine your eligibility, and show you the next steps to take. Book your consultation today via the button below.
Could not recommend Intuitive highly enough!! Their customer service was impeccable from start to finish. I was never left waiting or wondering, they were on it every step of the way. Lachlan and Craig, thank you both, my experience could not have been more smooth thanks to you both
These guys are amazing! Intuitive have supported me over the past few years, and I can confidently rely on them to always achieve the best outcomes for me and my family.
Their knowledge, guidance, and commitment are second to none. Great work, guys, and thank you for everything you do. Highly recommend!
Couldn't be happier with the service from Intuitive Finance. From start to finish, they made the whole process simple and stress-free, always keeping us informed and answering any questions we had along the way. Their knowledge, professionalism, and willingness to go the extra mile really stood out. We felt supported throughout the entire journey and ended up with a great result. Highly recommend to anyone looking for a finance broker who genuinely cares about their clients. Thanks again for all your help! 😊
I cant thank the team at Intuitive Finance enough. I am not a savvy person when it comes to finance and documents etc, but they really talked me through everything and communicated in a way that helped make sense of it all. Im sure I was a nightmare to deal with but they were so polite and understanding and endlessly accommodating.
To their horror, I will absolutely work with them again in future.
Bonnie, Natasha and the team at Intuitive Finance are amazing to work with. I couldn't have asked for more. Over a very long selling and buying process they were always available and went above and beyond, explained everything clearly and were extremely supportive throughout the whole process. I really appreciated all their help and would recommend them to anyone looking for a mortgage broker.
I am so appreciative of all the work Bonnie and the Intuitive team put in, to help me obtain the perfect finance for the next step in my life.
Buying property is one of the most stressful things you’ll ever do, and I was dreading it!
However Natasha, Melissa, Clarise, Andrew and Bonnie were all amazing at helping me through the application for finance. They all provided exceptional care, a wealth of knowledge and always got back to me promptly with answers to all my questions 😄
The whole team had a great ability to put me at ease throughout the whole process! I can’t thank you all enough and I’m so happy in my new home!
I would wholeheartedly recommend the Intuitive finance team 100% as the finance brokers for anyone needing help with financing!
Thanks again so much, you’ve helped me get to the place I wanted to be!
I worked with Alexandra Pappas over a number of years as our goals shifted until I finally purchased my first property. Alex was always professional and clear in her explanations. Alex helped us navigate a few curly scenarios and I am grateful to have had her on my team throughout the process.
This was my second home buying experience and I went back to Intuitive finance as I was impressed the first time and I was not disappointed! Lachlan was amazing as was Natasha who was helpful, informative and very communicative in answering all questions. Nothing was too much trouble and I am grateful that the service has been the same if not better than my first time I used them! I could not recommend them enough!!
I am blown away by the exceptional service provided by Craig and the entire team at Intuitive Finance. Their expertise and dedication to finding the best financial solutions for us were truly impressive.
We had a complex situation with multiple properties, and Craig took the time to understand our needs and worked tirelessly to secure the best possible deals. We refinanced three of our properties, and the process was seamless thanks to Craig's guidance.
Their communication was outstanding, keeping us informed every step of the way. What really stood out was their willingness to go above and beyond to ensure our financial goals were met. Their professionalism, knowledge, and passion for their work are a rare find in the finance industry.
We can't recommend Craig and the team at Intuitive Finance highly enough. If you're looking for a finance broker who will truly look after your interests, look no further.
Thanks Michael & Alana
Third time I have used these guys and each time they proven their worth by guiding me through the relentless (and sometimes crazy) demands of various lenders. Special thanks to Natasha, Craig and Andrew for their patience and support. I don't hesitate to recommend Intuitive Finance and will use again when required.
Have employed Intuitive a number of times now to refinance. They make the process very easy and are great at finding the best options. Highly recommend
Craig and all the team at Intuitive Finance were fantastic in ensuring we were able to manage our investment purchase with excitement not fear. Their communication with us allowed us to feel confident with all our decisions. I highly recommend contacting the team at Intuitive if you are thinking about purchasing a property.
It was an absolute pleasure working with Intuitive Finance. The whole team was very professional and helped my partner and I purchase our first home. We would definitely work with them again in the future. A special thank you goes out to Alex who was always approachable with any questions we had.
Intuitive Finance has delivered the best mortgage brokering experience I’ve ever had. Initially recommended to me by a buyer’s agent, I only wish I’d found these guys sooner. Having worked with brokers for over 20 years for both purchases and refinances, I can confidently say that Intuitive Finance stands head and shoulders above the rest.
What sets them apart is their exceptional communication, organization, experience, and teamwork. They operate like a well-oiled machine, ensuring everything runs smoothly and efficiently. Despite being based in Perth, working with Lachlan and Craig in Melbourne was seamless. These two are absolute standouts—always available, quick to return calls, hardworking, and incredibly fast.
I also had the pleasure of working with Melissa and Clarise, who were equally lovely and professional. The entire team made the process stress-free and straightforward, something I’ve rarely encountered in this space.
I’ve already recommended Intuitive Finance to my family and friends because I know they’ll be in safe hands. If you’re looking for a broker that goes above and beyond, look no further. Highly rated and highly recommended!
Our Commitment to the Community
With every loan we settle, you can choose to support Challenge – supporting kids with cancer, the Movember Foundation, or the Lungitude Foundation. We donate $20 to your chosen charity and make annual contributions. It’s our way of giving back and helping those in need.
Building a New Home? Secure the Right Construction Loan
Planning a new build requires the right construction loan structure from day one. Our expert brokers help you secure competitive rates and flexible drawdown options tailored to your build. We work with a wide panel of lenders to match your contract, timeline, and budget. Start your construction journey with confidence and the right finance behind you.
