Building your own home | Sale, Warragul & Traralgon
Are you considering building or renovating your home? You will likely require a construction loan, which is a bit different from a traditional home loan. Let our team in Sale, Warragul & Traralgon find the one to suit your project.
A construction loan is tailored to the building process. This means that as the borrower, you are able to balance when payments need to be made to the builder - as they make progress with the build. The payments are usually made at key stages of the build process and are known as progress payments.
How does a construction loan differ from a traditional home loan?
Unlike a traditional mortgage where you pay principal and interest, a construction loan is an interest-only loan until the building process is finalised, after which the loan reverts to a principal and interest loan.
Due to the loan being progressively drawn down during the build, you’ll only be charged interest on the funds used so far. That means that if you have a $500,000 loan and you drawn down $150,000, you’ll only be charged interest on that $150,000 amount.
This can save you money during the build - funds you can put towards the project - instead of paying it to the bank!
What is involved in the process of applying for a construction loan in Gippsland?
You will need to produce a copy of the building contract/tender and the building plans to apply for a construction loan in Gippsland. The lender will organise a valuation to determine the potential market value of the property as-if-complete.
Some lenders may require ongoing independent property valuation and inspections before paying each instalment. This is done to make sure that everything is on track and within budget. This is also a great safeguard for you - it allows you to hold your builders or contractors accountable - so they are not being paid for unsatisfactory or incomplete work.
How can Mortgage Choice in Sale help with your construction loan?
Mortgage Choice in Sale will guide you through the construction loan process and help you understand all your options. Our team will remove the hassle and stress out of finding the right construction loan from our wide range of lenders, by doing all the research, paperwork and follow-up for you.
"Our experience with Dane in Sale & Traralgon was great. The process was easy and straight forward and we found Dane really helpful right throughout. Thanks Dane. Will definitely recommend to others!" [ Brooke Martin ]
Some resources to help guide you
- Watch: our simple property & finance videos
- Do some basic sums with our home loan calculators
- Download your free e-guide: Construction loans
Let's chat about your next step
Book an appointment or call Dane for a quick chat about your construction loan on (03) 5144 3265 or directly 0438 626 885 or click on the Contact Us button at the top of the page.
We service the Gippsland areas of Sale, Traralgon, Warragul, Inverloch, Wonthaggi, Leongatha, Morwell, Churchill, Moe, Heyfield, Maffra, Rosedale, Bairnsdale, Paynesville, Lakes Entrance and surrounds.
We can help you with:
- Home loans
- First home loans & incentives
- Construction loans
- Debt consolidation
- Business & equipment finance
- Personal loans
- Car loans & leasing
- Financial planning