CONSTRUCTION LOAN
Building your own home can be an exciting prospect, but the financial side of things can be daunting. This is where Noor Finance can assist. Here’s how:
A construction loan through Noor Finance is designed to support you through every phase of building your home—from blueprint to final inspection—with expert guidance and tailored financial solutions.
Unlike a standard home loan, a construction loan is released in progressive drawdowns, meaning funds are paid to your builder in stages as construction milestones are completed (e.g. slab, frame, lock-up, fit-out, and completion). You only pay interest on the amount drawn down, not the full loan upfront, which helps manage cash flow during the build.
Noor Finance begins by assessing your financial position, including income, deposit, and build costs, to determine your borrowing capacity. They’ll help you understand all associated expenses—like council approvals, site preparation, and contingency buffers—and ensure your loan structure aligns with your budget and goals.
They also manage the entire application process, from gathering documents like building contracts and plans to liaising with lenders and ensuring timely approval. Once construction begins, Noor Finance coordinates with your builder and lender to oversee each drawdown, ensuring funds are released smoothly and on time.
Even after the build is complete, Noor Finance continues to support you—reviewing your loan to ensure it remains competitive and helping you transition to a standard home loan if needed. Their hands-on approach means you’re never navigating the complexities of construction finance alone.
Would you like a breakdown of the typical drawdown stages or how this could work for a knockdown-rebuild scenario?
Understanding Construction Loans
Noor Finance can explain what a construction loan is and how it differs from a regular home loan. Unlike a traditional mortgage, a construction loan is typically drawn down in stages as construction progresses. This means you only pay interest on the amount you’ve drawn down, not the total loan amount.
Assessing Your Needs
Noor Finance will assess your financial situation and help you determine how much you can afford to borrow. We’ll also help you understand the costs associated with building a home, such as council fees, site costs, and construction costs.
Finding the Right Loan
There are many different types of construction loans available, each with their own features and benefits. Noor Finance can help you navigate this complex landscape and find a loan that suits your needs and circumstances. We can compare loans from a wide range of lenders, including major banks, smaller banks, and non-bank lenders.
Managing the Application Process
Applying for a construction loan involves a lot of paperwork, including building contracts, plans, and permits. Noor Finance can help you gather the necessary documentation and submit your application to the lender.
Overseeing the Drawdown Process
During the construction phase, funds are typically drawn down in stages. Noor Finance can help manage this process, liaising with the lender to ensure funds are released at the appropriate times.
Providing Ongoing Support
Even after your loan has been approved and construction has begun, Noor Finance will continue to provide support. We can assist with any questions or issues that arise, and can also help you review your loan periodically to ensure it continues to meet your needs.
