Construction Loans Perth
Embarking on a home-building journey in Perth? Construction loans offer a specialised financing solution tailored for those looking to construct their dream home from the ground up. Unlike standard home loans, construction loans cater to the unique needs of building a home, providing financial flexibility and support throughout the construction process. Zanda Wealth Mortgage Brokers stands ready to guide you through the intricacies of securing a construction loan in Perth, ensuring you partner with the right lender to bring your dream home to life.
Understanding Construction Home Loans Versus Traditional Home Loans
Loan Structure Differences
A standard home loan disburses a lump sum to cover the purchase of an existing home. In contrast, a construction loan releases funds in increments, aligned with each stage of construction, from laying the slab to the final touches. This staged drawdown ensures you only pay interest on the amount disbursed, offering a cost-effective approach to financing your build.
Repayment and Interest Rate Dynamics
During the construction phase, borrowers typically pay interest only on the amount drawn down, not the total loan amount. This can significantly lower repayment amounts until construction is complete. Interest rates for construction loans may vary, with most offering variable rates that adjust with the market.
Approval and Valuation Considerations
Securing a construction loan involves not just assessing your financial health but also the credibility of your builder and the project’s feasibility. Lenders may require detailed building contracts, plans, and a fixed price contract before approval. Additionally, a valuation of the completed home will often determine the final loan amount.
Stages of Construction and Payment
Payments or drawdowns are usually made directly to the builder in stages, such as after the completion of the slab, frame, lock-up, and final stages. Each drawdown requires an invoice from the builder and, often, an inspection by the lender to ensure construction is proceeding as planned.
Fees and Charges
Construction loans may come with additional fees and charges, including but not limited to, drawdown fees, inspection fees, and higher interest rates during the construction period. It’s crucial to compare these costs alongside the features of the loan to ensure it meets your needs.

How Zanda Wealth Mortgage Brokers Can Secure Your Perth Construction Financing
Step-by-Step Guide
Accessing Construction Finance in Perth
Step 1
Initial Setup
Evaluate Financial Landscape: Start by assessing your project’s scope, including the desired home type and budget. Our team aids in understanding the unique benefits of construction loans, especially how they facilitate cash flow by releasing funds according to your build’s progress.
Step 2
Identify Ideal Site: Our assistance extends to land selection, focusing on location, size, and compliance with zoning laws, ensuring it fits your construction objectives and influences your loan structure positively.
Step 3
Secure Approvals: Collaborate with architects to finalise your home design and obtain all necessary permits. We provide insights on how your design choices impact financing, especially regarding the loan-to-value ratio and valuation expectations.
Step 4
Examine Loan Options: Delve into construction financing details, from variable rate options to principal and interest repayment structures. We compare lender offerings to pinpoint a loan that meets the specific requirements of your construction or renovation.


Step 5
Analyse Builder Agreement: We rigorously assess the contract with your builder, ensuring the payment plan is in sync with your loan’s disbursement structure, crucial for aligning your financing with the build’s milestones.
Step 6
Secure Optimal Financing: Leveraging our expertise, we finalise a construction loan with terms that suit your project, including competitive rates and adaptable repayment options, aiming for a strategy that’s both financially viable and synchronised with your build timeline.
Step 7
Complete Land Transaction: We guide you through finalising your land purchase, aligning every financial detail with your construction loan to ensure a smooth transition to the construction phase.
Step 8
Oversee Construction Finance: As the build gets underway, we manage the financial aspects, ensuring prompt fund releases for each construction phase. Our active communication with your lender addresses any issues immediately, maintaining project momentum.
Heres How We Can Help You With Construction Loans Perth
Zanda Wealth Mortgage Brokers are your dedicated partners in navigating the complexities of construction loans in Perth. Our expertise in home lending ensures you maximise the benefits of a construction loan, designed specifically for those looking to build or undertake a major structural renovation. Here’s a detailed look at how we can assist in making your construction project financially manageable and successful:
Pair you up with Low-Deposit Loans
Initiating a construction project often requires significant upfront capital. We specialise in securing low-deposit loan options to facilitate the start of your project. This approach minimises the initial financial burden, allowing you to commence building with less out-of-pocket expense.
Find the Lowest Borrowing Rates for Your Construction Loan
Our home lending specialists compare the market to find you the most competitive borrowing rates. Construction loans are designed with unique features, such as interest-only repayments during the stages of the build, which can significantly impact your cash flow. We ensure that the loan terms, including fees and charges, are favourable to your financial situation.
Provide Additional Financial Guidance
Managing the drawdowns on your loan is critical to maintaining control over your project’s budget. We guide you in understanding how funds are released in stages as construction progresses, ensuring you only pay interest on the amount you’ve drawn, not the whole loan balance. This structured approach can lead to substantial savings over the interest-only term of your loan.
Navigate Lenders Mortgage Insurance and Home Insurance
If your loan amount exceeds a certain percentage of your property’s value, you’ll need to cover Lender’s Mortgage Insurance (LMI). We advise on ways to minimise or avoid these costs and also help you understand when and how to secure home insurance for your new build, protecting your investment throughout the construction phase and beyond.
Hold Your Hand Throughout the Process
From securing pre-approval to making the final payment to your builder, one of our seasoned and qualified brokers will be with you every step of the way. Our goal is to make the construction loan process as smooth and stress-free as possible, providing you with expert guidance and support from start to finish.
What Our Valued Clients Have to Say About Us
Zanda Wealth Mortgage Brokers: Securing Your Construction Journey in Perth
