Construction loans are designed for building new homes or major renovations, releasing funds in stages throughout the project. At BRM Financial in Christchurch NZ, we offer tailored construction loan services to meet your needs, guiding you through the application process and simplifying complex terms. Whether you’re a first-time builder or an experienced developer, our expert team ensures you have the right financing at every step, making your construction project a smooth success. Trust us to support your dream home build with customised solutions.
Determine a realistic budget for your construction project, including all costs.
Explore different construction loan options available from various lenders.
Choose a reputable and experienced builder who has a track record of successful projects.
Review your construction loan terms carefully, focusing on draw schedules, interest-only periods, and any fees or penalties.
Ensure proper insurance coverage for the construction project, including builder's risk insurance.
Account for unexpected costs and potential project delays by setting aside a contingency fund.
We’re proud of our success in helping clients secure construction loans. Our experienced mortgage advisers understand the unique challenges of construction financing and guide you through every step. From tailored loan solutions to seamless support, we help turn your construction dreams into reality. With our deep knowledge and commitment to exceptional service, you can rely on us to simplify the complexities of construction lending and provide the personalised assistance needed to achieve your goals.
We have financed several investment properties and I know he’s saved me a lot of stress, time and money. If you are looking for a great mortgage broker who listens and does what he says, Brads your man
Phil Cramner
Brad has been out mortgage ‘go to’ guy for 10 years now and over that time he’s proven himself to be a super knowledgeable and attentive
David and Fiona Burrows
Thank you so much for all your help and guidance, working with you was a fun and professional experience, and we refer all our friends to BRM for mortgage advice.
James and Donna Wadlow
Got questions about your construction loan? Check out our frequently asked questions below!
A construction loan is a specialized type of loan designed to finance the construction or renovation of a property. Unlike traditional mortgages, construction loans provide funds in stages throughout the construction process, allowing borrowers to draw funds as needed to cover expenses.
Construction loans typically have a draw schedule, where funds are released in increments at various stages of construction. These stages may include foundation construction, framing, roof on and completion. Interest is charged only on the amount drawn, rather than the total loan amount.
Lenders typically have specific requirements for construction loans. These may include a detailed construction plan with specs, a licensed and insured builder, and a suitable deposit. Each lender may have different criteria, so it's essential to consult with a mortgage broker to understand the specific requirements.
TYes, construction loans can be used for major renovations or significant additions to existing properties. The loan amount would be based on the projected cost of the renovation or addition. It's important to provide detailed plans and estimates to the lender when applying for a construction loan for renovations.
Yes, once construction is complete, you can typically convert the construction loan into a permanent mortgage. This process is known as "construction-to-permanent" financing. It allows you to transition seamlessly from the construction phase to the long-term financing of your completed property. The terms and conditions for the permanent mortgage will be determined during the application process and may differ from the construction loan terms.
Let our expert team at BRM Financial guide you through every step. Contact us today to find the perfect mortgage solution tailored to your needs!
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