Deal with a team who are experienced in construction finance

A construction loan is a lending option that provides you with the funds to pay your Licenced Builder throughout the stages of your build or renovation process.  They are available for both a new build and a major renovation.

Gaining an approval for a construction loan is different than applying for a standard home loan on an established home. Your Exceed Mortgage expert will assist you to make this process simple and straight-forward.

Each Lender will deal with this type of loan differently and will have their own specific process. Construction Home Loans are funded in progress payments. Your Builder will set out in your fixed price contract what the proposed stages are.  As each stage is completed, you will be asked to sign off that you are happy that the build has reached that milestone and that it is okay for the Lender to pay the Builder. You will usually do this by signing the invoice or a draw-down request form.  Your Mortgage Broker will assist you throughout this process so that it runs smoothly and on time.

A Fixed price contract from the builder of your choice is important because you will not be able to top-up during the construction phase and only then if the value of your finished home is enough to support an increase.

Construction loans are Interest only during the construction phase and you only pay interest on the portion that has been funded from the pre-agreed loan amount. Once your home is completed the loan will revert to principal and interest, unless otherwise agreed. At this time, you can choose a fixed interest loan, variable interest, or a combination of the two.