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Construction Loan

A standard home loan makes the entire loan amount available in a single lump sum, whereas a construction loan allows borrowers to draw on the loan balance when payments to the builder are due.

How can I apply for a construction loan?

Once you've decided on a registered builder, your lending institution will request a collection of documentation. This comprises city plans and permits, insurance provisions, and a copy of your fixed-price contract, which includes a Progressive Payment Schedule.

Banks will approve your loan if your documentation is in order and you match the standard lending conditions. However, keep in mind that each progressive drawdown includes additional conditions.

Construction Loan Process

  • Application: Similar to conventional home loans, your lender will look at your income and savings to determine your repayment capacity. Additional documents, such as a fixed-price building contract, Council-approved building drawings, a copy of your builder's license, and so on, will be required for a construction loan.
  • Making progress payments: When your loan is authorized, you will receive funds in a series of installments. These will be made at various stages of the construction process, as stipulated in your building contract.

Your lender will inspect the property and want a few final documents for a final value before making the final progress payment to your builder. Once the final payment is paid, your loan will be converted to the conventional house loan or loan package that you have chosen.

Loans by Reliiance Financial Solutions

We all have different needs and requirements. Let our knowledge and experience help you get the most suitable financial solution for you. At Reliiance Financial Solutions, we work with you, for you.

Talk to a Reliiance Financial Solutions expert for a consultation

FAQ

At Reliiance Financial Solutions, we have been privileged to have worked with hundreds of remarkable individuals and families.

Very few things come close to receiving their genuine appreciation of our services. All we can say in return is - the pleasure was all ours.

It is also our pleasure to share some client testimonials with you. Please click on Video Testimonials to view them all. Use the buttons at the bottom of the screen to navigate through the videos.

Want a quick and entertaining snapshot of our services? Click on Services Videos and enjoy!

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