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Building a new home is one of the most exciting things you can do. Whether you are planning a custom design on a block you already own, looking at house and land packages, or thinking about a major renovation, construction finance works differently from a standard home loan. At Balcombe Financial, we help clients across Bayside, Victoria and right across Australia access Construction Loan options from banks and lenders across Australia, so you can move forward with confidence.
How Construction Loans Work
A construction loan is a specialised building loan that releases funds progressively as your build reaches certain milestones. Rather than receiving the full loan amount upfront, your lender releases funds in stages according to a construction draw schedule. This is known as a progressive drawdown, and it means you only charge interest on the amount drawn down at any given time, rather than on the full loan balance. This can make a real difference to your repayments during the build period, particularly when combined with interest-only repayment options that many lenders offer during construction.
Each stage of the build triggers a progress payment, and your lender may arrange a progress inspection before releasing the next instalment. These progress payments typically align with key milestones such as the slab being poured, the frame going up, lock-up stage, fixing stage, and practical completion. This structure is sometimes called a Progressive Payment Schedule or progress payment schedule, and it is designed to protect both you and the lender throughout the build.
What You Need to Get Started
Most lenders require a fixed price building contract before approving a construction loan application. This gives the lender certainty about the total cost of the build and helps establish the loan amount. You will also generally need council plans and council approval, or at least a development application in progress, before funds can be released. Your builder must be a registered builder, and lenders will want to see evidence of this before the construction loan is approved.
Some lenders also charge a Progressive Drawing Fee each time funds are released during the build. Balcombe Financial will walk you through what fees apply with each lender so there are no surprises along the way.
The Types of Builds We Can Help With
Construction finance is not one-size-fits-all. At Balcombe Financial, we work with clients across a wide range of building scenarios. If you are purchasing suitable land and building through a volume builder, we can assist with land and build loan options and land and construction packages. If you are working with an architect on a custom home, we can look at custom home finance options. For those looking to renovate rather than build from scratch, a house renovation loan or home improvement loan may be more appropriate, and we can help you understand which product suits your situation.
We also assist with project home loans, owner builder finance, off the plan finance, and spec home finance for those with more specific requirements. Each of these products has its own lending criteria, and the construction loan interest rate, loan terms, and lender requirements can vary significantly. That is why working with a broker like Balcombe Financial, who can access Construction Loan options from banks and lenders across Australia, makes such a difference.
Why Construction Finance Is Different
Unlike a standard home loan, construction funding is released in instalments tied to your build progress. This means the lender needs to be comfortable not just with your financial position, but also with the builder, the contract, and the property itself. Lenders will typically require that you commence building within a set period from the Disclosure Date, so timing matters. If you are also purchasing vacant land as part of the process, the land component may need to settle before construction finance can be drawn.
For those considering a cost plus contract rather than a fixed price building contract, it is worth knowing that many lenders prefer fixed price contracts because they provide greater certainty around the total cost. Balcombe Financial can help you understand how your contract type may affect your borrowing options and which lenders are most likely to consider your application.
If you are thinking about development finance for a larger project involving multiple dwellings, that is a separate product with its own criteria, and our team can point you in the right direction there too.
Building a new home is a significant commitment, and getting the construction finance structure right from the beginning sets you up for a much smoother experience. Balcombe Financial is here to help you understand your options, compare lenders, and put together a construction loan application that reflects your situation accurately and completely.
Step 1: Initial Conversation
We start with a relaxed, no-obligation chat to understand your situation, your goals, and what you're looking to achieve. No paperwork, no pressure.
Step 2: Fact Find & Assessment
We take a closer look at your finances, including income, expenses, assets and liabilities, so we can understand your borrowing position and tailor our approach accordingly.
Step 3: Loan Strategy & Lender Selection
Drawing on our panel of over 40 lenders, we identify the most suitable options for your circumstances and present you with clear, comparable recommendations.
Step 4: Application Preparation
Once you're happy with the direction, we prepare and package your application thoroughly, making sure everything is in order before anything is submitted to a lender.
Step 5: Lodgement & Approval
We lodge your application and manage the process with the lender from start to finish, keeping you updated along the way so you're never left wondering what's happening.
Step 6: Formal Approval & Signing
Once your loan is formally approved, we walk you through the loan documents so you understand exactly what you're signing and what comes next.
Step 7: Settlement & Beyond
We stay with you through to settlement and beyond. Whether you have questions down the track or your circumstances change, we're always here to help.
Balcombe Financial has been absolutely helpful throughout the process of my construction loan. Amazingly proffesional and responsive. Michael is full of knowledge and knows his proffesion very well. Would highly recommend Balcombe Financial. Thank you Michael.
James O'Haire
We were extremely happy with the service and outcomes provided by Michael Flinos and Balcombe Financial. Michael gave us confidence early in the process as he worked with us to understand the complexity of our portfolio of loans. Michael then found solutions that best suited our needs, provided considerable savings and improved our flexibility. We are thrilled with the refinancing outcomes Michael enabled us to achieve and are we pleased to have Balcombe Financial as one of our trusted advisors. In addition to the excellent outcomes Michael was great to work with and helped us maintain momentum when the other challenges of life distracted us. In our next project with Balcombe Financial Michael is assisting us with a new project and our overall financing strategy. Very professional, client focussed, easy to work with and highly recommended.
Andrew O'Brien
Michael was fantastic to deal with and got my complicated financials sorted out and finance approved without any fuss. Would highly recommend.
Terry Wheeler
I have known Michael Flinos for more than a decade. Michael is a true Professional who is an authentic, subject matter expert in his domain and has great knowledge in the Financial services space and is extremely thorough and diligent. In all my dealings with Michael, I have been impressed with his knowledge, his ability to research products which are fit for purpose and his can do nature. He has a friendly and polite demeanor and is always prepared to go the extra nine yards to get the job done. I would not hesitate to recommend Michael's services to anyone who is looking for a commercially compelling solution to their requirements.
Bill Keramidas
The timeframe for a home loan application can vary depending on the lender, the complexity of your situation, and how quickly supporting documents are provided. In general, once a formal application is submitted, lenders may take anywhere from a few days to a few weeks to assess and provide a decision. At Balcombe Financial, we work to keep the process moving as efficiently as possible by preparing your application thoroughly from the start and staying in regular contact with the lender on your behalf. We will keep you updated throughout the process so you always know where things stand and what to expect next.
Absolutely. Buying your first home is one of the biggest financial decisions you will ever make, and it can feel overwhelming when you are not sure where to start. At Balcombe Financial, we work with first home buyers regularly and understand the questions and concerns that come with the process. We take the time to explain how home loans work, what to expect at each stage, and what government grants or schemes you may be eligible to explore. We do not make assumptions about what you already know, and we are always happy to answer questions no matter how basic they may seem. Our aim is to make sure you feel prepared and supported.
A mortgage broker acts as the link between you and a range of lenders, including banks, credit unions, and non-bank lenders. Rather than you having to approach each lender individually, a mortgage broker does the legwork on your behalf. At Balcombe Financial, we take the time to understand your personal situation, your goals, and your financial position before researching loan options that may suit your needs. We handle the paperwork, communicate with lenders, and guide you through each step of the process. Our role is to make the home loan process more manageable and to help you feel informed and confident at every stage.
While the exact documents required can vary depending on your situation and the lender, there are some common items that most applications will require. These typically include proof of identity such as a passport or driver's licence, recent payslips or tax returns to confirm your income, bank statements showing your savings and expenses, and details of any existing debts or liabilities. If you are self-employed, you may need to provide additional documentation such as business financial statements or tax assessments. At Balcombe Financial, we will walk you through exactly what is needed for your specific application so you can gather everything in an organised way and avoid unnecessary delays.
Balcombe Financial assists clients with a broad range of lending needs. This includes home loans for owner-occupiers, investment property loans, refinancing existing loans, construction loans, and loans for self-employed individuals. We also assist with commercial lending for business owners. Whether you are purchasing your first home, looking to grow a property portfolio, or exploring options for your business, we can help you understand what may be available to you. Every client's situation is different, so we always start with a conversation to understand your specific needs before exploring what options might be worth considering.
When you go directly to a bank, you only see the products that particular bank offers. At Balcombe Financial, we work with a wide range of lenders, which means we can present you with a broader selection of loan options to compare. We take the time to understand your circumstances and help you weigh up your choices in a way that makes sense for your situation. Beyond that, we handle much of the communication and administration involved in applying for a loan, which can save you a significant amount of time and effort. Our goal is to make sure you feel supported and well-informed throughout the entire process.
Not at all. While Balcombe Financial is based in Bayside, Victoria, we work with clients right across Australia. Thanks to phone, email, and video calls, we are able to provide the same level of personalised service to clients regardless of where they are located. Whether you are in regional Victoria, interstate, or anywhere else in the country, we are well-equipped to assist you with your lending needs. We believe that access to quality mortgage broking support should not be limited by geography, and we are committed to making ourselves available and accessible to clients no matter where they call home.
Refinancing means replacing your existing home loan with a new one, either with your current lender or a different one. People refinance for a variety of reasons, such as looking for a loan with different features, consolidating debt, or accessing equity in their property for renovations or other purposes. Whether refinancing makes sense for your situation depends on a number of factors, including your current loan terms, any fees involved in switching, and your financial goals. At Balcombe Financial, we can help you review your current loan and compare it against other options so you can make an informed decision. We will always be upfront about the costs and considerations involved.
A fixed rate home loan locks in your repayment amount for a set period, which means your repayments stay the same regardless of any changes in the broader lending environment during that time. This can make budgeting more predictable. A variable rate loan, on the other hand, can change over time in line with lender decisions, which means your repayments may go up or down. Some loans also offer a split option, where part of your loan is fixed and part is variable. Each option has its own advantages and trade-offs depending on your circumstances and priorities. At Balcombe Financial, we can help you understand the differences and think through which structure may suit your needs.
In most cases, our mortgage broking service comes at no direct cost to you as the client. Balcombe Financial is typically paid a commission by the lender once your loan settles. We are required by law to be transparent about how we are paid, and we will always disclose this information to you clearly before you proceed. This means you can access our knowledge, support, and lender connections without paying out of pocket for the service. If there are any situations where a fee may apply, we will always discuss this with you upfront so there are no surprises along the way.
Whether you are planning a new home, a renovation, or a house and land package, Balcombe Financial can help you find the right construction loan for your situation. Book an appointment with our team today.
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