Need to finance your new build?

Loan Market Elevate specialises in helping clients finance the construction of their new homes. We have supported clients from Clarendon Homes and Domaine Homes for nearly a decade, helping thousands of customers finance their new home build.

A construction loan requires approximately 34 steps from start to completion. By working with our construction loan specialists at Loan Market Elevate, you will have a dedicated team negotiating the right loan for you from a panel of over 60 lenders, and managing the process from application to the day you collect your keys and beyond. We keep on top of your progress payments and each step of the process so you can avoid unnecessary late fees or delays in the build, while you focus on the design and detail of your new home.

A word from Matt Campbell, Clarendon Homes CEO why he chooses the team at Loan Market Elevate

"A few years back, I got really sick and tired of seeing Clarendon Home clients get delayed, frustrated, and disappointed by their finances. It was becoming all too common that our clients just didn’t have the right guidance or loan type, their broker wasn’t familiar with the construction loan process, or their bank response time on approvals was slow. That's why we have a team of finance professionals at Loan Market Elevate to help our customers have a seamless experience with Construction finance. We couldn't be as successful as we are without the support of the team at Loan Market Elevate"

Frequently asked questions about construction loans

Construction loans are quite different to a regulart home loan, so it's likely that you have some questions. Here are some frequently asked questions to help - reach out with any questions we haven't answered, we're ready to help. 

What is a construction loan?

A construction loan is finance that funds the construction of property. It is paid in instalments as the work is completed. Borrowers will generally need a deposit and provide detailed plans of the construction work to be completed when applying. The loan is then secured by the property being built.

What is the difference between a home loan and a construction loan?

A home loan generally consists of a single payment upfront at the settlement of a property. A construction loan works differently. It consists of payments at various stages of the construction as it is completed, known as progressive drawdowns, paid directly to your licensed builder.

Often a construction loan will offer interest-only repayments during the build and convert to a principal and interest repayment once the construction is complete. This means that you only make interest repayments on the funds that have been drawn down at any time.

By our count, there are over 30 opportunities for people building a new home to get lost, confused, delayed or frustrated managing their own construction loan, and that’s if they’re only negotiating with 1 bank or lender.

With your Loan Market Elevate Construction Home Loan Specialist, you delegate the responsibility to 1 committed professional who makes it their mission to negotiate 100s of attractive rates and products with over 60 well-known lenders to secure finance that fits your plans and your timeframe.

And they do this for customers building new homes every single day.

How do the payment instalments work?

Before the property construction begins, the builder will prepare a document that lists the overall cost of the project along with a breakdown of the stages that will form the schedule of payment. The builder then issues an invoice at the completion of each stage. The lender may choose to send someone to the property to check the construction is progressing as stated.

Often the stages will be:

1. Slab - laying the foundations.
2. Frame - construction of the frame, roof, windows and some brickwork.
3. Lockup - installation of outside walls, doors and windows.
4. Fit out - installation of electricity, plumbing, gutters and plasterboard.
5. Completion - final touches are made including final electricity, plumbing and cleaning.

Having a Construction Home Loan Specialist working for you, opposed to a regular mortgage broker or working directly with a bank, means you have the money you need, when you need it during your build journey to help prevent any unnecessary delays.

How do you apply for a construction loan?

The process of applying for a construction loan is different to applying for a standard home loan. Our Construction Home Loan Specialists will walk you through the entire process to give your application the best chance possible of being approved.

The lender will request a number of documents, including the construction plans and specifications (approved by the council), your signed building contract and the builder’s risk insurance policy information. You will also need to provide details of your income, credit score, savings and employment. The lender may then need a valuation of your proposed new build.

What happens once the construction loan has been approved?

Once approved, you will need to pay the deposit. The builder can begin construction once you have received the approval and your lender will make payments based on the schedule of payment. You will be required to pay the interest on the released funds.

What deposit do I need for a construction loan?

The amount you will need depends on the lender. Generally, a lender will ask for a 20% deposit. You may be able to pay less, however this usually requires you to pay Lenders Mortgage Insurance (LMI). Whatever deposit you have, speak with our team Construction Home Loan Specialists and we will match you with the right lender or talk through ways you can get there sooner.

In addition, Loan Market Elevate are partnered with Clarendon Homes and Domaine Homes NSW to offer clients who build with either of these builders a range of benefits including;

• A reduced deposit amount
• A waiver for interest on any overdue progress payments
• The provision of a tender expiry guarantee to protect against price increases

and many more benefits…