1300 381 244
A construction loan is a short-term financing option used to cover the costs of building a new home or undertaking significant renovations. Unlike traditional mortgage loans, which provide a lump sum for purchasing a property, construction loans are typically disbursed in stages based on construction milestones. Construction loans are a crucial tool for those looking to build their dream home or undertake substantial renovations, providing the financial support needed throughout the building process.
Specifically designed for financing construction projects, whether residential or commercial.
Funds are released in increments (or “draws”) at various stages of the construction process, such as after the foundation is laid, when framing is completed, and upon final inspection.
Borrowers usually pay interest only on the amount drawn, not the total loan amount, during the construction period.
Construction loans are generally short-term, lasting about 6 to 12 months, with the expectation that the loan will be converted to a mortgage once construction is complete.
Lenders often require detailed project plans, a budget, and a contract with a licensed builder. A strong credit history and a down payment (typically 10-20%) are also necessary.
Borrowers need to manage costs closely, as going over budget can impact loan terms and availability of funds.
ERFS has specialized knowledge about construction loans and can guide you through the complexities of the application process, helping you understand the specific requirements and options available.
ERFS has access to a wide range of lenders and loan products, allowing them to compare rates and terms on your behalf. This can help you find the best deal tailored to your needs.
ERFS can assist with gathering necessary documentation and completing the application, making the process smoother and less stressful for you.
ERFS can identify lenders that are more flexible with unique situations, such as unusual building projects or financial circumstances, and may find options that align closely with your goals.
ERFS can negotiate with lenders on your behalf, potentially securing better terms, lower fees, or a more favorable drawdown schedule.
ERFS can provide support throughout the construction process, helping you manage changes, additional funding needs, or refinancing options once the project is complete.
Our initial process is to learn about your circumstances and find out what value we can provide to you.
After understanding your circumstances, we develop a loan structure and strategy tailor made for you using our wide range of lenders.
Once we have identified the most suitable lender for your circumstances we will assist with the submission ensuring we communicate with all relevant parties for a smooth settlement.
Call us at 1300 381 244
With over 15 years of combined mortgage broking experience, we have helped clients from all walks of life. We pride ourselves on providing 5 star services to all our client, ensuring they are catered for throughout their journey.
Our mission is to simplify the process from identifying your goals, planning your loan structure all the way to settlement of your loan. Our services range from assisting first home buyers to savvy investors with property portfolios.
112/29-31 Lexington Drive, Bella Vista, NSW, 2153, AUTRALIA
1300 381 244
info@erfs.com.au
Construction loans provide vital short-term financing for new builds or major renovations, offering flexible draw schedules and interest payments based on project progress.
With expert guidance and tailored solutions, ERFS ensures a seamless experience from application to completion, supporting your construction goals.
103/5 Murray Rose Avenue
Sydney Olympic Park, NSW, 2127, AUSTRALIA
1300 381 244
info@erfs.com.au
