Construction Loan Tips

Tip 1: Ensure your Mortgage House lender has answered all your questions regarding the process
for your new Construction Loan and mortgage repayments.
Tip 2: Get a number of quotes from builders and compare them. If there is a large variation
between quotes, ask them to requote with a better price and include more details.
Tip 3: Ask your builder for a list of references and if possible, drive past and see their work.
Ask their past customers how they found the experience and the quality of their work.
Tip 4: Ensure the builder is aware of and able to comply with the 6 month limit to complete construction.
Tip 5: Arrange your insurance covering the full replacement value and ensure the correct First
Mortgagee is listed (your home loan lender will be able to provide this information).
Tip 6: Check your builder has all the necessary qualifications and insurance policies (such as
indemnity insurance, public liability insurance and warranty insurance etc) to carry out the construction work.
Tip 7: Provide your builder with the list of details required, by Mortgage House, to appear on their
invoice to avoid any delays in payment.

Verify your builder

  • Check they have a valid license and there a no claims against this builder.
  • Your state licensing office will be able to assist you with this, please find relevant links below: