Construction Loans

Building your dream home or embarking on major home renovations can be an exciting yet complex process. At Bayland Finance, we understand the unique financial needs that come with construction. Our expertise in construction loans helps clients access various Construction Loan options from banks and lenders across Australia. Whether you're in Mornington, Victoria or anywhere nationwide, our goal is to make the journey towards your ideal home smoother and more manageable.

When considering a construction loan, one of the primary factors is the interest rate. Choosing the right product can significantly impact your overall loan amount and repayment schedule. At Bayland Finance, we provide guidance on interest-only repayment options and how they can benefit you during the construction phase. Our streamlined application process ensures you spend less time applying for a loan and more time focusing on your project. By working closely with you, we help tailor a loan that fits your needs, whether it involves a new build or demolishing an existing property.

A key feature of construction loans is the progressive drawdown system. Unlike traditional loans, construction loans allow you to access funds in stages, known as instalments or progress payments. You only charge interest on the amount drawn down, which can lead to significant cost savings over time. This approach aligns with the various stages of the project, from development application to council plans and permits. As you reach construction milestones, such as work completed by plumbers or electricians, funds are released to pay sub-contractors as per the Progressive Payment Schedule.

Understanding the 'as if complete' valuation is crucial when applying for a construction loan. This valuation considers the projected value of your property once construction is complete, influencing both the loan amount and the structure of progressive payments. It’s important to make a plan that includes clear timelines and outlines your ideal location and price range. Ensure you are aware of council restrictions and regulations, as well as Out of Contract Items not included in your initial budget.

The flexibility of construction loans also extends to home improvement loans and projects like buying off the plan. These loans require you to commence building within a set period from the Disclosure Date, ensuring that your investment aligns with current market conditions. As each stage of construction is completed, additional payments may be necessary to move forward. The Progressive Drawing Fee is an essential consideration, as it covers the administrative costs associated with releasing funds at each stage.

Whether you're planning a new build on suitable land or tackling major renovations, Bayland Finance is committed to guiding you through every step. We provide insights into council plans and permits and assist with managing payments to registered builders and sub-contractors like plumbers and electricians.

With Bayland Finance by your side, you can confidently pursue your construction goals. Our expertise in construction loans ensures that you have access to the best options available across Australia. Ready to take the next step? Contact Bayland Finance today to discover how we can support your journey toward your dream home.