Construction Loans

Build Your Dream with Construction Loans

Turning blueprints into reality.

What is a Construction Loan?

A construction loan is a specialised type of financing that provides funds to build a new home, renovate an existing one, or complete a major building project. Unlike a standard mortgage, funds are disbursed in stages as construction progresses.

How Does a Construction Loan Work?

Loan Approval: Your lender approves your loan based on the project's plans, budget, and your financial situation.
Progress Payments: Funds are released to your builder in stages (drawdowns) as they complete specific milestones.
Construction Phase: You typically make interest-only payments during the construction period.
Completion: Once construction is complete, the loan often converts to a traditional mortgage.

Key Features of Construction Loans
Progressive Drawdowns: Funds are paid out at different stages of construction.

Interest-Only Payments: Often available during the building phase to help manage cash flow.
Detailed Documentation: Requires comprehensive plans, permits, and builder contracts.
Lender Inspections: Lenders may inspect the property at each stage to ensure work is completed.

Building Your Future with Frontier Finance Co.

At Frontier Finance Co., we understand that building your dream home is a significant undertaking. We offer:

Tailored Loan Solutions to fit your unique project requirements.
Access to competitive interest rates to help you stay within budget.
A smooth and efficient loan process to get your project started on time.

Take the First Step Towards Your Dream Home. Contact Frontier Finance Co. today for a free consultation and let us help you secure the construction loan that's right for you.

Frequently Asked Questions

What is a progress payment?
A progress payment is a portion of the construction loan that is paid to the builder as they complete specific stages of the building process. The stages and payment amounts are typically outlined in the construction contract.

What is a fixed-price contract?
A fixed-price contract is an agreement with your builder where the total cost of the construction project is agreed upon before work begins. This provides cost certainty and helps you stay within budget.

What is a drawdown?
In the context of a construction loan, a drawdown refers to the release of funds from the lender to the borrower (or, more accurately, to the builder) at each stage of construction.

What is LVR?

LVR stands for Loan-to-Value Ratio. It's the percentage of the property's value that you are borrowing. For example, if you are borrowing $400,000 to build a home on a $500,000 piece of land, your LVR is 80%.

Disclaimer:
This information is intended for general guidance only and does not constitute financial advice. Construction loans can be complex, and it's essential to seek professional advice tailored to your individual circumstances. Contact Frontier Finance Co. to discuss your specific needs and determine if a construction loan is right for you.

Get Expert Investment Loan Advice Today

Your future deserves a smart, strategic finance partner. Let Frontier Finance Co. help you build your dream home with the right loan solution.

Book Your Free Consultation Now

Inquiry | Call 0413 798 731 | email: info@frontierfc.com.au

Frontier Finance Co. – Loan Specialists for Australians who want more for their future.

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