Construction And Renovation



Construction loans can be complex.

Not all lenders have constructions loans.

And of those that have them, they are not all the same.

Depending on the lender, you may get charged higher interest rates or fees on a construction loan.


Construction loans work on a progressive draw down basis, usually in line with your building contract.

This means that you only pay interest on the money that has been drawn.

On a standard domestic building project the loan will generally be drawn in stages in accordance with the building contact as follows;

  1. Deposit
  2. Base Stage
  3. Frame Stage
  4. Lockup Stage
  5. Fixing Stage
  6. Completion


There are a number of ways to finance your renovations.

Using equity

The easiest way is to borrow the funds against the equity in your property, before the work is carried out.

Construction loan

If you don’t have equity, then the next approach is a construction loan. This is where you borrow based on the value of the property once the renovations are complete.

On small jobs, quotes from tradespersons will be suffice.

On major renovations, the lenders will require a fixed price building contract and payments are made to the builder as each stage is completed.

Using credit card / personal loans

Another option, which suits small renovations on a tight time-frame, is to pay for the works using a credit card or personal loan.
The debt is then consolidated into the home loan once the work is done.
This suits borrowers in a hurry that are doing the work themselves or are busy coordinating a number of trades people.

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My partner and I were very anxious about getting our first home loan. Hellen was incredibly supportive right from a free consultation before we even had our deposit together, through to applying for the loan a year later. She was patient and answered our many questions throughout the process. Even today we keep her updated on our progress and ask for advice on paying off our loan quickly. We’d like to thank Hellen for her patience and flexibility!

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The difference between Hellen and other brokers I have used comes down to her approach; it doesn’t feel like I’m just another client for her, instead I am someone that is important and deserves her personal attention. She is someone I can rely on for advice, has been always responsive, always professional and always delivered for me when I needed something.

Our new business was showing potential but we needed an injection of cash to take it to the next level. Our bank, however, refused to help us out and the finance brokers that we spoke to said not to bother trying, as we had no chance of getting a loan!

Then Hellen was recommended to us and it literally changed our business!

Hellen was able to share the vision we had of putting a mobile cat grooming van on the road, the only one of its kind in Perth. She left no stone unturned in finding a loan provider that was not only willing to give us the money but also a repayment scheme that suited us. The support she gave us right through the process was exemplary!

Since then the business has not looked back and we are considering expanding again.

When we do Hellen will be the one we call!

I have no hesitation in recommending Hellen’s services to anyone.