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6 easy steps towards your construction loan

15.04.19 - Home Building, Clarendon Homes

With this loan type, you are offered the flexibility to manage the most common financial speed bumps making the journey a smooth process for all involved.

Here’s where our team of internal Finance Managers come in. They've prepared 6 easy steps to make things a little easier.

Step 1 - Sales Centre

Pay a sales deposit to your sales person.

Step 2 - Tender Acceptance

With acceptance of your tender you are required to pay the balance of $5,000 and this will be allocated to your build.

At this point Clarendon can arrange a borrowing capacity calculation and conditional loan approval for a loan to support any shortfall for your land purchase and/or construction loan.

Steps 3 - Contract Signing

With acceptance of your contract and assuming your land is unregistered you are required to pay $5,000 which will be allocated to your build.

If you wish for Clarendon to arrange your finance no further funds are required by you until 4 weeks prior to going to site to commence your build.

With registration of your land you will be required to pay the balance of 5% of your building contract less the $10,000 you would have already paid to Clarendon.

Step 4 - Colours Appointment

After this appointment any variations are accounted for and a bank pack is issued including your updated build price, building plans and builders insurance.

With these documents your loan can progress to unconditional approval and loan contracts arranged for your execution.

Step 5 - Land Settlement

If you have purchased land you are required to pay any balance of your contribution toward the land and any shortfall will come from the land loan in line with settlement date.

Step 6 - Construction

If self-funding your build you are required to provide a bank statement to validate you have sufficient funds available for the balance of your build.

If you have a loan to fund any shortfall for your build you are required to first pay the balance of your contribution then progressive payments in line with your building contract will be claimed from the lender as follows:

  1. Slab
  2. Frame and trusses
  3. Completion of brickwork
  4. Internal linings
  5. Practical completion*

Our licensed mortgage brokers are backed by Loan Market, meaning they have a long list of financial institutions friends. With over 30 banks and lenders you know and trust in the one place, you can have the confidence we’ll find the right loan for you.

Find out how much you could borrow today.

Use your income and expenses to estimate how much you may be able to borrow for a construction loan and submit a form to our team today.

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* For final payment an interim occupation certificate will be required to arrange final payment with the lender. Additionally you are required to provide a copy of your building replacement insurance policy identifying the building replacement cost and your lenders name as an interested party on the insurance.

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