Construction Loans

Personalised Lending Solutions for Your Construction Project

Building your own home from scratch or embarking on a major renovation is an incredibly exciting journey. However, securing the right finance for a construction project is a little different than buying an established house. It requires a specialised approach to ensure your funding aligns perfectly with your building timeline and payment schedule.

At Ferns Finance, we are experts in navigating the intricacies of construction loans for clients throughout Beenleigh, Logan, Scenic Rim, and the Gold Coast. We provide loan solutions for:

• Buying Land: Secure finance for your perfect block of land.
• Building New Homes: Fund the construction of your custom-built dream home.
• Purchasing Off-the-Plan: Finance your future property before it's even built.
• House & Land Packages: Streamline the process of buying both the land and the build with a single solution.
• Major Renovations: Obtain funding for significant structural changes or extensions to your existing home.

The Construction Loan Process: Simplified by Ferns Finance

Securing a loan to build a home is unique because the land and building purchase often need to settle separately, and funds are released in stages. We do all the legwork to match your needs to the right construction loan, saving you time, stress, and hassle.

1. The Application Stage:To accommodate the staged nature of building, your lender will typically manage your initial loan as two separate but simultaneous applications – one for the land purchase and the second for the completed house and land cost. The second application will ultimately consolidate and replace the first loan, leaving you with just one comprehensive loan.
2. The Construction Stage:Most lenders will require you to start building on your land within a specified timeframe (often two years) of settlement – this doesn't mean you need to finish the home within this timeframe, just that you need to commence construction. The construction of your home will generally be conducted in stages (e.g., slab, frame, lock-up, fix-out, completion), with payments required from your loan at the end of each completed stage. Your broker assists with these progress payments.
3. The Repayment Stage:A key benefit of construction loans is that the bank or lender only charges you interest on the amount of money you have actually drawn down to pay your builder. Therefore, your minimum repayment will vary, gradually increasing as your home progresses through each stage of construction. While most construction loans have a variable interest rate, there are some available that operate as fixed-rate loans. If you opt for a fixed rate construction loan, you might have one rate on your land loan and a second rate on your construction loan.

Why Choose Ferns Finance for Your Construction Loan?

We leverage our relationships with over 60 banks and lenders to find the most competitive rates and flexible terms for your building project. We understand the specific requirements for construction finance in the Beenleigh, Logan, Scenic Rim, and Gold Coast regions, and we're committed to making your journey to a new home as smooth and successful as possible.

Don't let the complexities of construction finance overwhelm you. Talk to us today about your plans, and let us help you lay the financial foundation for your dream home.