Finance requirements for your build What you need to do, based on how your build is financed
How you fund your build will determine the steps you need to take before construction can begin. The information below outlines what needs to happen and when, whether you are using a lender or paying with your own funds. If you are financing your build through Loan Market Elevate, their team will coordinate directly with your lender and our team. This means they will manage the below on your behalf, so you can focus on building your new home. If you’re using your own lender or broker For customers not financing through Loan Market Elevate
1. Pre-Approval – We recommend having your pre- approval in place before or at the time of signing your Building Contract. While pre-approval is not a formal loan approval, it is an important step in the process and gives you an understanding of your borrowing capacity. 2. Conditional Loan Approval – Once your loan application is assessed, your lender may issue a conditional loan approval. This means your loan has been approved in principle, but certain conditions must still be met before they can issue unconditional approval. Some of these conditions may include documents that we will provide in your Bank Pack, such as your signed Building Contract, architectural plans, and evidence of your 5% deposit. You may also need to provide other supporting documents such as updated payslips or bank statements. 3. Bank Pack – After you have signed off all your Studio selections and quotes, your Finance Liaison will compile and send you a Bank Pack. This includes the key documents your lender typically requires to move from conditional to unconditional loan approval. We cannot issue your Bank Pack until your selections and quotes are finalised, so it is important
In addition to our documents, your lender may need other information such as: → Evidence of income and savings → A bank valuation of your land and future home → Quotes for items outside of your Building Contract, for example, landscaping and driveways 4. Unconditional Loan Approval – Before any work can commence on site, your unconditional loan approval must be in place. To secure this, send your Bank Pack to your broker or lender, along with any additional documents they need, as soon as you receive it to avoid delays. 5. Final Reconciliation & Progress Payment Schedule Prior to construction commencing, we will issue your final reconciliation. This document confirms your total build cost and includes an updated progress payment schedule which outlines the new total for each payment. You must forward these documents to your broker or lender as soon as you receive them. This allows them to align your loan payments with the updated schedule, helping avoid any delays in releasing funds during construction. Your payments are staged across key milestones during construction. Each payment is a percentage of your total build cost: 1. Deposit payable after contract signing and on receipt of HOW insurance (5%) 2. Completion of concrete slab (20%) 3. Erection of frame and roof trusses (25%) 4. Completion of brickwork/Hebel (20%) 5. Commencement of internal linings (20%) 6. Practical completion; all major building work complete, excluding minor items (10%)
to prioritise this step to avoid delays. Your Bank Pack typically includes: → Your signed Building Contract → Current architectural plans
→ Builder’s insurances → 5% deposit receipt → Any changes made after the Building Contract is signed (referred to as post-contract variations) → Your DA or CDC approval → An interim reconciliation showing the current contract total (including post-contract variations), along with an updated progress payment schedule
What we need from you Before work can begin on site, your Finance Liaison will need to confirm your loan is unconditionally approved and will cover your total build cost. They will ask you to provide: → A copy of your unconditional loan approval in the name(s) of the Building Contract signatories. → Confirmation of the loan amount allocated for your build (excluding land, refinance, Lenders Mortgage Insurance (LMI), or other third-party costs). → If your loan does not cover the full build total, we will need a current bank statement showing available funds to cover the shortfall (no older than 30 days). Please note, we cannot accept loans approved on a ‘cost to complete’ basis. Your lender must agree to our progress payment schedule. We also won’t accept share portfolios and other investments as proof of funds.
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