Construction Loans

At KM Financial Service, we understand that building a home or undertaking major home renovations can be a significant milestone in life. Whether you're planning a new build, buying off the plan, or looking to demolish an existing property, our expertise in construction loans ensures you find the right financial solution. This service not only helps you access construction loan options from banks and lenders across Australia but also simplifies what can often feel like a complex process. Our team is dedicated to helping you make informed decisions, ensuring your dream home becomes a reality.

When considering a construction loan, one of the key factors is understanding how the loan functions throughout various stages of the project. With a construction loan, you can benefit from a progressive drawdown structure. This means that you only pay interest on the amount drawn down for each stage of your project. As you reach construction milestones, such as laying the foundation or completing the roof, funds are released in instalments known as progress payments. This structure ensures that you only charge interest on the amount drawn down, making it a cost-effective way to finance your build. Additionally, interest-only repayment options can further ease financial pressure during construction.

A well-structured Progressive Payment Schedule plays a crucial role in managing your finances efficiently. This schedule is aligned with the 'as if complete' valuation, which assesses the property’s value at various stages of construction. Working with professionals such as registered builders, plumbers, and electricians is also essential. These experts ensure that each phase is completed to a high standard and within council regulations. It's important to plan for Out of Contract Items not included in your initial agreement, as these can result in additional payments. Proper planning and communication with sub-contractors about council plans and permits will help keep your project on track.

For those applying for a loan, KM Financial Service offers a streamlined application process to ease the journey. We assist you in making a plan that considers your ideal location, price range, and any potential council restrictions. When applying for a loan, understanding the loan amount and interest rate is vital. Our team provides guidance on selecting suitable land and preparing a development application if needed. We also ensure that you commence building within a set period from the Disclosure Date to avoid unnecessary delays or penalties.

The ability to pay sub-contractors promptly with progress payments ensures that your project proceeds smoothly without interruptions. Whether you're dealing with council regulations or exploring home improvement loan options for smaller-scale projects, KM Financial Service is here to support you every step of the way.

In summary, accessing construction loan options from banks and lenders across Australia can be a straightforward process with the right guidance and support. At KM Financial Service, we are committed to helping you understand every aspect of your loan, from interest rates and loan amounts to Progressive Drawing Fees and construction milestones. Contact us today to begin your journey towards building your dream home or undertaking that long-awaited renovation project. Let us help you turn plans into reality with a construction loan tailored to your needs.