The most important element of any loan is understanding what a bank is willing to lend you. This is known as your ‘borrowing capacity’ and it will dictate what funds you’ll need to contribute from your personal savings to satisfy the bank. This is when we review your income, expenses, liabilities and savings to understand your maximum construction loan limits and deposit requirements.
After we have all the information we need, we will propose a lender based on the best loan rates and construction loan process. Once a lender is chosen, we will perform the necessary duties to submit your loan application and finalise an approval.
Once your loan is approved, we will coordinate the settlement and confirmation to your builder. As your builder starts the build, they will request invoices (as per your building contract) as part of a progress payment schedule. We are here to help manage the payments from the bank to the builder throughout the whole process, including any variations or issues that may arise.
Once the build is completed, a final inspection will be ordered by the bank and the last progress payment made. Interest rates and the market may have changed between the time of approval and final payment, so we suggest re-reviewing this now that the build has been completed.