Construction Loans

Construction Loans with Greenbridge Finance

Building a new home or undertaking a major renovation requires a different type of loan than a standard home loan. At Greenbridge Finance, we assist clients with construction loans and guide them through the process from land purchase through to construction completion.

Construction loans are more complex than standard home loans, as funds are released in stages as the building progresses. We help manage the process with the lender to ensure everything runs smoothly.

How Construction Loans Work

Unlike a standard home loan where the full loan amount is provided at settlement, a construction loan is funded in stages, known as progress payments. The lender releases funds to the builder at different stages of construction.

Typical construction stages include:

  1. Slab or foundation stage

  2. Frame stage

  3. Lock-up stage

  4. Fixing stage

  5. Completion stage

During construction, you usually only pay interest on the amount that has been drawn, not the full loan amount.

Greenbridge Finance will help coordinate the progress payment process with the lender and builder.

What You Need for a Construction Loan

Lenders require more documentation for construction loans compared to standard home loans. This is because the lender needs to review the building contract and project costs.

Common documents required include:

  • Fixed price building contract

  • Council approved plans

  • Specifications and inclusions list

  • Builder details and insurance

  • Quantity surveyor or valuation (if required)

  • Proof of land ownership or land contract

Greenbridge Finance will review the documents and submit them to the lender as part of the loan application.

House and Land Packages

Greenbridge Finance also assists clients purchasing house and land packages. These loans are usually structured as a construction loan, where the land settles first and the construction loan funds the building component.

We can help structure the loan correctly so that the land loan and construction loan work together smoothly.

Owner Builder Loans

If you are planning to build as an owner builder, lending options may be more limited, and lenders may have stricter requirements. Greenbridge Finance can help you understand which lenders may consider owner builder loans and what documentation will be required.

The Construction Loan Process

Greenbridge Finance will guide you through the construction loan process step by step:

  1. Review your financial position and borrowing capacity

  2. Arrange pre-approval (if required)

  3. Land purchase or review of land ownership

  4. Review building contract and plans

  5. Submit construction loan application

  6. Formal approval

  7. Land settlement (if applicable)

  8. Construction progress payments

  9. Construction completion

  10. Loan converts to standard home loan

We work with you, your builder, and the lender throughout the process.

Why Use Greenbridge Finance for Construction Loans

Construction loans involve more steps than standard home loans, and having the right guidance can make the process much easier. Greenbridge Finance helps manage the loan process, communicate with the lender, and ensure the progress payment process runs smoothly.

We aim to make the construction loan process clear, organised, and well managed from start to finish.

Speak With Greenbridge Finance

If you are building a new home, purchasing a house and land package, or planning a major renovation, Greenbridge Finance can assist you with construction loan options and guide you through the process.