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Loan Market brokers can help you to finance buying land, building new homes, purchasing off-the-plan and house & land packages.
You have a few options when it comes to finance. When building a new home, a construction loan is worth considering. Depending on the size of the renovation you may be thinking about refinancing your home loan or taking out a personal loan. Your Loan Market broker can talk you through your options and find the right loan for you.
A construction loan is finance specifically for the construction of property. It is paid in instalments as the work is completed. Borrowers will generally need a deposit and provide detailed plans of the construction work to be completed when applying. The loan is then secured by the property being built.
A home loan generally consists of a single payment upfront at the settlement of a property. A construction loan works differently. It consists of payments at various stages of the construction as it is completed, known as progressive drawdowns, paid directly to your licensed builder.
Often a construction loan will offer interest-only repayments during the build and convert to a principal and interest repayment once the construction is complete. This means that you only make interest repayments on the funds that have been drawn down at any time.
Generally, buying a house and land requires two products. They are processed separately but can be bundled together. The land purchase is similar to a regular mortgage and then the finance for the home is usually a construction loan.
Before the property construction begins, the builder will prepare a document that lists the overall cost of the project along with a breakdown of the stages that will form the schedule of payment. The builder then issues an invoice at the completion of each stage. The lender may choose to send someone to the property to check the construction is progressing as stated.
Often the stages will be:
The amount you will need as your deposit depends on the lender. Generally, most lenders want a 20% deposit, however, you may be able to pay less, however this usually requires you to pay lenders mortgage insurance (LMI).
The type of renovation loan that is right for you depends on the size of the project. If you do not have the money to fund the project outright, your Loan Market broker can talk through the following options to find the right one for you.
Your options could include:
Let us know what your goals are and we will connect you with a Loan Market broker directly.
Find a broker close to you, or set up a video call at a time that suits you.
Understand how much money you have coming in compared to what you spend using this calculator to help you identify where you could save.
Understand the amount you will need to pay your lender before you apply for a home loan and ensure you can comfortably meet your repayments.
Determine your repayments and the total amount of interest you are likely to pay.
Our Customer Care team is available weekdays, 8:30 AM to 5:30 PM (AEDT).
With over 600 mortgage brokers throughout Australia, we’ve likely got someone just around the corner from you.
Looking for a career change? We’re committed to working with you to achieve your goals.
Send an email to customercare@loanmarket.com.au to get in touch.
Our Customer Care team is available weekdays, 8:30 AM to 5:30 PM.
With over 650 mortgage brokers throughout Australia, we’ve likely got someone just around the corner from you.
Looking for a career change? We’re committed to working with you to achieve your goals.
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ABN 89 105 230 019 | Australian Credit Licence 390222
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
*Your broker may charge a fee to cover additional time required by their team. Any fees will be discussed with you in advance so you can make an informed decision before proceeding with your application.
