Construction Loans

Construction Loan Experts

Building a home specific to you and your family’s needs definitely sounds exciting, however, when it comes to bearing the cost and expenses associated with constructing a property from scratch then, things becomes a whole lot fiddly. Indeed home construction loan is the easiest way to make this dream come true however; securing a construction loan isn’t as easy as it sounds. Also there are some potential risks involved such as:

The construction process not being completed in budget or as per the schedule
Post construction the property’s worth isn’t at par the building cost

Construction loans don’t work in the same manner as regular home loans, having an entirely different structure, which is where the need of a trustworthy and skilled mortgage broker comes into the picture! We at Derwent Finance in Hobart hold years of experience, having successfully helped number of clients achieve their home financing goals. If you too want to build the house of your dreams in Hobart or local to Launceston then you can trust us to have a smooth and stress free experience.

We can ensure that:

You don’t pay higher home loan interest rates during the construction
You don’t end up with inadequate construction finance
You don’t have to do the backbreaking leg work and go through the complex process

This is what we can do:

We find out low deposit building loans to best fit your needs
Get your construction loan approved at the best possible home loan rates
Guide you through the whole process, having in-depth knowledge of lending policies and building loan structure

How Building Loans Work

When it comes to construction loans then the amount isn’t given in lump sum instead, it is given in portions as the construction works progress, which is known as progress payments or draw-downs.

With every stage of construction the next portion of the loan can be drawn down. Before, the progress payments, there has to be made a deposit or down payment to cover the initial cost of the material required to start constructions.

Post the deposit, there are 5 stages in which the progressive payments are received: