Platinum Construction Loan

If you require further information after reading this guide, please refer to your loan contract terms and conditions for further information.

With a standard home loan, all required funds are advanced at settlement by paying a purchaser, for example. However, with a construction loan, we will usually retain all of the cost to construct your property (this is usually the fixed price building contract amount).

Construction funds are progressively drawn down at each stage of construction.
Each progress drawdown is referred to as a "Progress Payment". Progress payments are made directly to the builder once an invoice has been provided.

If we are only funding a portion of the cost to construct your home, you must contribute your own funds before you can draw down the loan funds. Similarly, funds retained for construction cannot be used towards the purchase of land.

You must make interest payments on your construction loan during the construction period, interest is charged on the funds that you draw down. We will contact you before the final progress payment about the payments that you must make after the final progress payments.

After construction is completed and we have received all the information we require, your loan will convert to a Principal and Interest repayment type. The construction of your home must commence within 12 months of loan settlement.

Construction must be completed within 12 months of first progress drawdown.

• Copy of stamped council approved plans and specifications

• Copy of Builders All Risk Insurance (either on insurers letterhead or certificate of currency)

• Copy of Owners Warranty Certificate

• An authority from you to pay the builder

The Lender may release a maximum 5% of the building contract at settlement if you have already paid that to your builder. You will need to give us a receipt of that payment.

Generally, we will arrange for a valuation for frame and completion stages to ensure that construction is on track.
However, if the construction contract is outside HIA standards, a valuation will be ordered before all progress payments are made.

Please provide the following information to our Customer Service team (construction@financepath.com.au) prior to paying your builder at each completed construction stage:
1. Progress Payment Claim Form signed by borrower(s) authorising the payment.
2. Copy of builder's progress claim or invoice.

Note: We will only advance funds for works that have been completed. The Lender will not advance funds for materials purchased or delivered on-site but not incorporated into the structure.

Our Customer Service team is here to help and can assist you with submitting the relevant information and forms we require. We are also available to clarify any questions you have regarding the building process. Please contact us, we are here to help.

Email: construction@financepath.com.au
Phone: 1300 780 440