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:
Check the builder's reputation:
NSW Office of Fair Trading Home Building Service
QLD Building Services Authority
VIC The Building Commission
ACT ACT Planning & Land Authority
SA Office of Consumer & Business Affairs
TAS Register of Accredited Building Practitioners
WA Builders Registration Board
NT Northern Territory Department of Planning and Infrastructure