Building & Construction

If you're considering building your dream home, understanding the nuances of construction loans is essential. Unlike traditional home loans, construction loans, also known as owner builder loans, provide a unique financial solution tailored to the building process. These loans grant you access to funds at critical stages of your project, known as progress payments, and you'll only pay interest on the amount you've drawn.

This translates to smaller initial repayments that gradually increase as your construction advances. With variable interest rates and a maximum Loan to Value Ratio (LVR) of 95%, our experienced Property Finance Advisors can help you navigate the lending landscape and ensure your construction journey remains on track, even if your timeline extends up to 6 months.

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Construction Home Loan Process

Step 1. Application

Just like traditional home loans, your income and savings will need to be assessed to gauge your repayment capacity. However, construction loans require additional documentation, including a fixed price building contract, Council-approved building plans, and a copy of your builder's licence, among others. Our experienced team at Vie Finance & Insurance will guide you through the required paperwork to streamline your application.

Once your construction loan is approved, funds will be disbursed in a series of payments, aligned with various milestones in your building contract. These milestones typically include preparation, the slab or base floor, frame, lock-up, fit-out, and completion. Our team will ensure that these payments align seamlessly with your project's progress.

Before making the final progress payment to your builder, your chosen lender will inspect the property and collect a few last documents for a final valuation. Once the final payment is made, your loan transitions to the agreed-upon home loan package.