INFORMATION
Construction loans
Construction loans are specialiSed financing solutions designed to fund building projects through progressive drawdowns, ensuring funds are released as each stage of construction is completed.
Construction Loans for Your Vision, Realised
Construction loans are a tailored financing solution designed to meet the specific requirements of building and development projects. At Brilliance, we recognise the importance of flexible, milestone-based funding that matches your project’s pace.
Our finance experts collaborates with you to secure the capital needed when you need it, helping to ensure your vision moves seamlessly from plan to reality.
How Construction Loans Work
Unlike standard loans, construction loans operate on a “progressive drawdown” system, where funds are distributed in stages as your project reaches key milestones, such as laying the foundation, framing, and lock-up. This incremental funding structure helps reduce overall interest costs, as you’re only charged interest on the funds you draw rather than on the total loan amount upfront.
Key Features of Construction Loans
- Progressive Drawdowns: Incremental funding is provided in phases tied to construction milestones and validated by a quantity surveyor. This method aligns with the project’s cash flow and helps to minimiSe interest payments, giving developers and builders more financial control
- Interest-Only Payments During Construction: Paying only interest during construction provides cash flow relief, allowing developers to allocate funds to essential expenses without increasing their debt load. Once the project reaches completion, the loan typically shifts to a standard repayment structure
- Deposit and Loan-to-Value Ratio (LVR) Options: A deposit of 5-10% is common, though a 20% deposit can bypass the need for Lenders Mortgage Insurance (LMI). Our construction loans support a range of LVRs, making them accessible to clients across residential, commercial, and mixed-use developments
- Flexible Loan Term Options: Construction loans at Brilliance Finance Group are designed for short to medium terms, typically covering a 12- to 24-month period. This flexibility supports all phases from groundbreaking to completion, with options for post-completion refinancing or conversion to long-term mortgages
- Comprehensive Pre-Approval: Pre-approval gives you clear budget parameters before signing building contracts, often with an “as if complete” property valuation to assess future value upon completion
- Streamlined Documentation Process: In addition to standard income verification, a construction loan application generally requires documents such as a fixed-price building contract, builder’s payment schedule, and approved council plans. Starting with a complete application ensures a smooth and timely loan approval
With extensive construction finance expertise, Brilliance Finance Group connects you with highly competitive rates, flexible terms, and swift approvals. Our market knowledge and strong lender partnerships make us a valuable ally in turning your project from blueprint to building.
Ready to Bring Your Project to Life? Contact Brilliance Finance Group Today
From residential complexes to commercial properties and mixed-use developments, Brilliance Finance Group has the expertise to support every phase of your project. Connect with us today to explore your construction loan options and discover how we can help make your vision a reality.
