Construction Loans

If you've met or known someone that has built a home, they will usually tell you how stressful the whole process was. This is largely due to that fact that they were not educated on exactly what to expect throughout the process.

Building a home is a long process; unfortunately there is no getting around this. When you have multiple companies & business involved in achieving the same end goal, this is bound to happen. We have definitely seen quick builds, say 6 months for the whole process but this is a rare situation. The bulk of time taken is out of your hands; therefore it is crucial that the things that you can control get done as quickly & efficiently as possible.

That's where we come in, working in the north of Adelaide, we have come across a range of different scenarios that clients have brought to us.

There is almost nothing we haven’t seen & we have relationships with builders & trades people so you don't have to do all the running around.

Knowing exactly what to expect before you start, keeps you cool, calm & collected if something were to go not as planned.

We have a step by step process in place for anyone that is thinking about building, below is a basic version of what it's like to buy land & build a home.

Step 1 : Initial appointment with Mortgage Broker

  • Sit down and establish financial goals for the future
  • Collect information to establish current financial position
  • Calculated borrowing power based off of information provided
  • Establish how much deposit is required to purchase land & build for the desired amount
  • Run through the in's & outs of building a home & what to expect from the process
  • Set up a savings plans & budget if more deposit is required

Step 2 : Pre-Approval

  • Run through different loan options to suit your needs
  • Collect all required documentation as per the lenders request
  • Submit application for pre-approval for the land purchase as well as the build loan (Important)
  • Receive pre-approval letter from lender

Step 3 : Find Land

  • Establish the area you wish to live
  • Research land estates in area
  • Work with land agent to help you find your ideal block of land
  • Make sure you are aware of certain costs involved with certain blocks of land, eg. power lines, rocks, the slope of the land
  • Sign contract to purchase land once you have found where you want to build

Step 4 : Buy Land

  • Convert land pre-approval to full approval
  • Sign loan contracts
  • Put appropriate insurances in place (Important)

Step 5 : Choosing your builder/ Additional Works

  • Research builders in the area that bought your block of land
  • Attend display homes to get a good idea of the house you want to build
  • Sit down with different builders & work out rough costs
  • Pick a builder & start the process with them
  • Get proper quotes for additional work needed for a completed home

Step 6 : Full approval

  • We will order construction valuation once final build plans & additional works are completed
  • We will calculate the exact loan amount & how much deposit is required based off of the valuation
  • Convert pre-approval to build into full approval
  • Complete & sign First Home Owners Grant (If applicable)
  • Sign loan contracts & put appropriate insurances in place if haven’t done so already

Step 7 : Construction

  • The lender will issue a commencement letter to the builder once they are ready to start the build
  • The build will happen in stages, each stage will have to be paid, for the next stage to commence
  • Once the builder is done you will receive your keys to your new home!
  • The additional works can be completed once the build is finished
  • Once all additional works are completed, the loan will finish & revert to P&I repayments

Step 8 : Move In!

  • You are now ready to move into your brand new home!
  • Document any things you notice aren't quite right with your build & the builder will send someone out to fix them
  • Discuss with broker other loans options now that the build is complete (Fixed Rate?)

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