Construction / Building Loans

Here's what you need to know about construction loans:

  • Your income will be assessed, the level of income you need to live off, and the remaining disposable income you have to service a loan with.  
  • Stability of income is also taken into account
  • Your existing credit card and personal loans are also considered to measure how much of your income is already committed.
  • A full 'construction bank pack' will need to be provided when applying for a construction loan. Ask your builder for this. This pack includes information such as plans, specifications, council approval, land and building contracts.
  • A construction loan is paid out in segments known as 'progress payments'. When the construction reaches specific stages, which are inspected and approved in writing by you and the valuer, these payments are made by the lender to the builder.
  • It is general practice for the minimum loan repayment to be interest only, on the outstanding balance, until the home is fully constructed and the loan is fully drawn at which stage normal principle and interest payments would commence.


If you are a property investor or simply looking at purchasing your first investment property, contact us today to find out more

We are here to help, talk to us now

08 8363 8800

19 Rundle Street, Kent Town, SA 5067  
Telephone: 08 8363 8800 Fax: (08) 8362 2025
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