Construction Loans

Construction & Development Finance

Construction finance solutions can be structured in many ways to suit the specific needs of a development project and the borrower’s financial situation.

As all borrowers do not fit into mainstream lenders’ credit criteria, we can also arrange alternative funding solutions to suit the individual circumstances and requirements of borrowers.

constuction loan melbourne

We arrange Construction & Development funding solutions for

Office buildings
Shopping Centres
Town Houses
Petrol Stations
Warehouses & Storage
Hotels & Pubs
Land Subdivision
Medical Clinics
Factory units
Residential units
Warehouses & Self Storage
construction loans melbourne
Full Doc Funding Options

Arranged via major banks and other financial institutions, generally requiring pre-sales and up-to-date full financials.

Low Doc Funding Options

Usually sourced via tier-two & private lenders, they are far more flexible and generally do not require pre-sales or up-to-date full financials.

Construction & Development Finance

Every day, individuals and small businesses in Australia enter into contracts for building and construction projects. Constructing or building a property could be a difficult exercise. However, it allows you to get creative and design a property tailored to suit your business or personal lifestyle. Whether you demolish and rebuild or renovate an existing property, consider a new project or are buying land to build a new home, a construction loan could be an ideal solution to achieve your goals. Construction finance solutions can be structured in many ways to suit the specific needs of a development project and the borrower's financial situation.

fixed price building contract
interest loan

Securing finance for a planned construction project could be a daunting task, whether working on a commercial construction project, a self-build or a home extension.

All borrowers may not fit into mainstream lenders' credit criteria. However, at Aus Wealth, we can also arrange alternative funding solutions to suit individual circumstances and requirements. We have helped many independent property developers or owner-builders who acknowledge the need for an alternative approach to secure flexible, fuss-free funding for construction projects. We will guide you through all you need to know about construction finance and address critical concerns and frequently asked questions, exploring the advantages and drawbacks.

What is a construction loan?  

Generally referred to as a construction or owner-builder loan, the type of finance is usually a short-term, secured loan used to pay for the construction cost of the building project. The type of property can include residential, commercial, or industrial buildings.

A construction loan provides funds to pay a licensed builder or to finance an owner-builder project throughout each stage of your building or renovation project. Significantly, the loan amount is based on the expenses needed to complete the construction and is not based on the property value at the end of the project. Therefore, construction loans/owner-builder loans operate very differently from standard home loans. Construction or owner-builder loans typically charge interest-only repayments for the construction period or duration of the build and are traditionally fixed at 12-18 months. 

Banks and finance companies also offer home construction loans for consumers looking to construct their residential home property . Lenders provide home construction loans to both existing and new borrowers. Most lenders offer this facility through their traditional home loan products.

council approved plans for construction loan

Benefits of a construction loan

constuction loan melbourne
A construction loan offers flexibility
Drawdown as you build
Pay interest only during the building phase
Save on interest by linking to an offset account.