Construction Loan

What Is a Construction Loan?

Construction loans can be used for either owner-occupied or investment properties. Their uniqueness lies in financing a completely new house without existing tenancies, allowing the borrower to feel like the true owner of a newly constructed home. Additionally, it's easier to qualify for the First Home Owners Grant (FHOG) with new construction. The application process is the same as for purchasing an owner-occupied house or an investment property. However, there are a few distinctions:

Buying Land Only

Loan Approval: Pre-approval and formal approval for just the land portion.
Loan Settlement: Settle the land loan and start repayments while searching for a builder.
Rental Disclosure: Disclose rental expenses since you won’t occupy the property immediately.
Construction Phase: Finalize the deal and begin construction with the same lender.
Progress Payments: The bank pays the builder in stages until construction is complete.

House and Land Package

Single Application: One loan covers both the land and house construction.
Loan Settlement: Settlement occurs once the house is built, covering both components.

Are you planning to buy a home? We will take care of everything!

How HR Mortgage & Finance Works

Initial Consultation

Have a phone or face-to-face conversation with our expert broker.

Loan Structuring

We need your financial documents and specifics about your requirements.

Apply For Pre-Approval

After finalizing all necessary details, we'll proceed to pre-approval. Typically, your pre-approval will arrive 5-7 working days, subject to the bank's processing time.

Find Your Dream Home

We'll be there to support and guide you every step of the way until you discover the perfect property. Once you've identified a property that meets your criteria and reached an agreement on price with the vendors, we'll recommend proceeding with signing the contract.

Get the Final Approval

Once the contract is signed, we initiate the valuation process. Subsequently, the solicitor/conveyancer will review the contract and conduct pest and building inspections. Concurrently, we'll proceed with submitting your loan for formal approval. The timeframe for obtaining formal approval may extend up to a week, contingent upon the bank's processes.

Settle Your Loan

When all the paperwork is complete the keys to your dream home will be handed over to you.