Fraser Rise · Construction
Building in Fraser Rise: Construction Loan Payments
Understand how land settlement, building stages and lender drawdowns fit together before committing to a new-home build.
By Offset Mortgage · General mortgage information
Land and building can have different timelines
If you are considering a build in Fraser Rise, check whether you are purchasing completed property or entering separate land and building contracts. Land settlement and construction do not necessarily occur together. Your finance needs to reflect those contracts and their timing. Discuss when your own contribution is required and how repayments may work before and during construction.
Progress payments are not one upfront loan release
Construction lending commonly releases money as agreed building milestones are reached. The builder's contract sets out payment arrangements, while the lender has its own process for approving a drawdown. Those processes should be checked together. A builder requesting payment does not mean the lender will automatically release it that day; evidence, an invoice or an inspection may be needed.
Prepare the documents early
A lender may request a fixed-price building contract, plans, specifications, permits and a valuation of the completed property. Ask which documents are required for your application and which are needed before the first payment. Confirm how interest is charged on funds drawn down and what happens when the construction phase ends. Requirements vary by lender and loan product.
Leave room for delays and changes
Budget for the possibility that your building and finance timelines do not run exactly as planned. Check what happens if costs change or a stage is delayed, and do not assume an approved loan increases automatically. Chris and our team can work through the finance questions from our Eastcastle Drive office in Fraser Rise or remotely. Your building adviser and conveyancer should explain the contract obligations separately.
