Understanding how a construction loan works is essential for anyone looking to build their dream home or undertake a significant renovation project. Unlike traditional home loans, construction loans are typically disbursed in stages as your construction progresses. This means you only pay interest on the amount that has been drawn, helping you manage costs effectively. Lenders frequently include a maximum period limit, typically 24 months, for the total drawdown of your loan. If you want to wait to start building, you might have to get the land on a separate land loan.

Lenders may require a copy of the building contract, DA and plans and drawings when you apply for a loan. Based on the land and drawings they estimate the property’s value upon completion, and they’ll base your loan amount on the on-completion value. 

At Gold Finance, we guide you through each phase, from initial planning to project completion. Our construction loans cover everything from land purchase to final touches, ensuring you have the necessary funds at each milestone. Once your project is complete, the loan can be converted into a permanent mortgage, providing you with long-term financing options. Let us help you navigate the construction loan process with ease and confidence, making your building project a success.