A construction loan is specific loan that caters for property owners wishing to build a new home on land they already own or doing a major structural renovation of an existing property. The significant difference between new construction loans and normal loans is that you only pay interest payments on the loan amount drawn down as you progress through the construction. The progress payments are initiated as you receive bills from your builder. For example, if you have already paid for your land and then arrange a construction contract with your builder, they will ask for a progress payment upon the completion of a specific stage of the project.

Most lenders offer their construction loans at a variable interest rate with interest only repayments during the construction phase. The loan will revert to principal and interest repayments when the construction is completed. To obtain approval for a construction loan often requires plans, permits and a fixed-price building contract.

At Viable Finance we want to assist you accomplish your dream home by obtaining a construction loan. We will discuss your idea and then carry out a review of your financial situation. We then prepare all the paper work required by the selected lender to obtain approval of your construction loan.