Construction Loans

 

Econ-Finance knows construction. And we understand how critical it is to have access to funds that will see you breaking ground as soon as possible. A Construction Loan is necessary if you are borrowing to build or renovate your property.

 

  • Mortgages for residential and commercial construction
  • Generally lenders require a fixed priced building contract and council approved plans
  • There are usually five to six stages of construction including, preparation, laying the slab base, framework, lock-up, fixing and completion. 
  • Loan is progressively drawn down over construction period
  • At completion of each stage, the builder will present you with an invoice which is authorised and presented to the lender for payment.
  • Before paying the builder, the lender may require a site inspection and valuation of work completed to date. Some lenders may charge an inspection fee for each visit. It is important that the construction stages are completed as scheduled. 
  • The builder will be advised of the mandatory insurance requirements in order to proceed including Builder’s Insurance of works, Home Warranty Insurance, Workers’ compensation and public liability insurance.
  • Interest only repayments are made over the construction period