When doing a major renovation or building a new home your finance needs are different to buying an established property. A construction loan is a specialised lending option for builders or renovators to help them through the process. These can be construction loans or home loans that have a construction facility.
Unlike regular home loans where you typically receive a lump sum of the loan amount at settlement, construction loans are paid out in periodic progress payments from the lender at different stages of construction.
If you’re knocking down and rebuilding, a construction loan may be the way to go. But if you’re just renovating, there are other borrowing options such as extending your current mortgage, securing a line of credit loan, mortgage redraw, releasing home equity, refinancing or even a renovation personal loan (if the work isn’t structural).
With access to 30+ Lenders, a Pivotal Financial Specialist can help you understand the various options and work out which one suits your needs. You get experts to do the construction for you, so why not get an expert to help you work out how to pay for it?
Talk to a Pivotal Financial specialist today, who can take the stress out of the process with expert advice and support.