Construction and renovation loans
Turn your building plans into a reality with a construction loan
We'll help you fund your new build or renovation
Building or expanding an investment property portfolio can be a rewarding venture. However, finding the right financial support is crucial, especially for projects that go beyond the usual offerings of major banks. At Olive Road Financial, we specialise in helping you access Construction Loan options from banks and lenders across Australia. Whether you are planning a new build, major home renovations, or buying off the plan, understanding how construction loans work will set the foundation for your project's success.
Construction Loans offer benefits tailored for property development. Unlike traditional loans, these options provide a progressive drawdown feature. This means that funds are released in stages, aligning with various phases of your construction project. You only pay interest on the amount drawn down, which can significantly reduce your costs. With interest-only repayment options available, managing cash flow becomes easier during the construction phase. This flexibility is ideal when working with professionals like plumbers and electricians or when you need to pay sub-contractors as you meet each construction milestone.
When applying for a loan, understanding the Progressive Payment Schedule is key. This schedule aligns with your builder's timeline and ensures funds are available at each stage of construction. Progress payments are made based on an 'as if complete' valuation, which assesses the property's expected value at various project stages. This approach helps maintain financial oversight and ensures you do not face unexpected outlays. It is also important to consider additional payments for Out of Contract Items not included in your initial agreement, such as changes in council plans or permits.
Choosing the right loan amount requires careful planning. It is crucial to make a plan that considers your ideal location, price range, and potential council regulations. If your project involves demolishing an existing property or dealing with council restrictions, a thorough development application is essential. Securing suitable land and managing permits efficiently can smooth the path forward. It is important to commence building within a set period from the Disclosure Date to avoid delays and additional costs like the Progressive Drawing Fee.
Olive Road Financial's streamlined application process simplifies accessing Construction Loan options. Our expertise ensures that the paperwork is handled efficiently, saving you time and effort. We help you understand interest rate options and guide you through choosing a loan package that fits your needs. Our team will assist you in managing the Progressive Payment Schedule and ensure that construction milestones are met without financial hiccups.
In summary, securing a Construction Loan tailored to your investment property needs can make all the difference in realising your vision. Olive Road Financial is here to help you access Construction Loan options from banks and lenders across Australia. Our commitment to a streamlined application process ensures you can focus on building or expanding your portfolio with confidence. Contact us today to explore how we can support your property development goals and bring your plans to life.
Who this is for
Olive Road Financial structures loans across a broad client base, from straightforward purchases to complex income and ownership structures.
Individuals building a new home on land they already own or purchasing land and building simultaneously
Investors developing residential projects, including multi-lot subdivisions
Businesses undertaking commercial construction projects
Clients who need a broker with direct lender relationships to manage progress payments and mid-project issues
Getting a Loan
Indicative position established within 2 business days.
We assess the project and the borrower
We review the approved plans, council approvals, builder contract, project cost breakdown and the borrower's full financial position before recommending a lender.
We structure the construction facility
We determine LVR, drawdown schedule, interest-only period during construction, loan-to-cost ratio and any pre-sale requirements for multi-lot projects.
We engage lenders who understand construction
We approach lenders with active construction lending teams who can manage progress payment inspections, variations and drawdown requests without significant delays.
We manage the full construction period
We handle all drawdown requests, progress inspection coordination, variation approvals and the loan conversion to a standard mortgage at completion.
What we look at
Builder Contract and Plans
Lenders require a fixed-price builder contract signed by a licensed builder, council-approved plans and a building permit before approving a construction loan. Olive Road Financial reviews all documentation before lodging an application to identify any conditions that could delay approval.
Project Budget and As-If-Complete Valuation
Construction loans are assessed against an as-if-complete valuation. Where the estimated end value is insufficient to support the required loan amount, the structure needs to change. Olive Road Financial reviews the project budget and models the as-if-complete position before approaching lenders.
Progress Payment and Drawdown Management
Construction loans are drawn in stages, typically slab, frame, lock-up, fixing and completion. Each drawdown requires a progress inspection. Olive Road Financial coordinates drawdown timing with the builder's payment schedule to avoid cash flow gaps during construction.
Calculate Your Borrowing Capacity
Understand your true borrowing power in under 60 seconds. Use our interactive calculators to project repayments, estimate stamp duty obligations, and evaluate your usable home equity.
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