Building your own home has long been a dream for many Australians and with property prices rising across the country it’s no surprise that we are seeing more Australians lean towards construction loans.

What is a construction loan?
A construction loan can be used to build your first home, do major renovations to an existing property, build an investment property or commercial space. Unlike regular home loans, once a construction loan has been approved and development is underway, lenders will make progress payments throughout stages of the construction.

Generally speaking, payments are made upon the completion of five states.

The five stages are:

Slab or base
The first payment is the amount that will help you lay the foundations of your property. This stage will cover the levelling of the group, plumbing and waterproofing of your foundation.

The second payment is the amount that will help you build the frame of your property. It also covers brickwork, roofing, trusses, and windows.

The lockup amount is to help you put up the external walls, install windows and doors – ensuring your home is “lockable”.

Fit out or fixing
The fit out or fix amount will help you do the internal fittings and fixtures of your property. This amount also covers plasterboards, the part-installation of cupboards and benches, plumbing, electricity, and gutters.

Completion is your fifth and final amount. This amount is used for the conclusion of contracted items (e.g. builders, equipment), as well as any finishing touches such as plumbing, electricity, and overall cleaning.

How we can help you
At Zero Mortgage, our team of mortgage brokers have access to over 40 lenders, including non-bank lenders. Our team will help you understand the various product options and work out which loan suits your needs.

If you’re ready to build your dream home or rebuild an existing home, speak to our team about your loan options on 1300 474 888 or fill out our enquiry form and a member of our team will be in contact shortly.


Contact us today!