Construction Loans

The new build mortgage market is complex and requires expert knowledge and a specialist approach.

Every step of your home building experience should be stress-free, including securing the right financing.

Why Choose FAFS for Financing Your New Home Build?

At Funds Assist Financial Services (FAFS), we specialise in guiding clients through the details of financing for building a new home. Our brokers have a thorough understanding of the available products and schemes, ensuring we get it right the first time and help you secure the right funding for your project.

  • Expert Knowledge: Our brokers are skilled in the unique needs of homebuilders, offering tailored advice for your specific project.

  • Specialist Approach: We understand the journey involved in building a new home, and we’re committed to helping you navigate it with ease.

  • Access to a Wide Range of Options: FAFS brokers have access to a diverse range of products, ensuring we find the best financing solution for your new home build.

Loan Repayments While Building Your Home

While your construction loan is progressively drawn with each payment to your builder, interest payments will be required to cover the interest accruing on your loan. During the construction period, the accrued interest will rise as the lender continues to release funds to pay your builder’s invoices.

Here’s what to expect with repayments during the construction phase:

  • During the Loan Drawdown Period: You will pay the interest that has accrued on the loan. The interest is calculated based on the interest rate of your loan and the outstanding balance as it increases with each progress payment to your builder.

  • At the Time of the Last Progress Payment: A final interest payment will be required on the same day the last progress payment is made to your builder. This marks the official start of your loan’s term.

Post-Construction Loan Repayments

Once the final progress payment is made, your loan repayments will change based on your chosen repayment structure:

  • Principal and Interest: If you selected principal and interest payments during your application, your repayments will switch to include both the principal and interest from this day forward.

  • Interest-Only Payments: If you opted for interest-only repayments, these will continue based on the loan balance for the nominated period.

Building Your Dream Home with FAFS

Choosing FAFS means partnering with experts who ensure that your home building process is smooth from securing financing to completing your dream home. Let us help you navigate your loan repayments and financing options every step of the way.