Residential Construction Loans
Build Your Dream Home with Ambition

Building your own home is one of the most exciting and rewarding experiences. At Ambition, we specialize in residential construction loans that provide the financial support you need to bring your vision to life. Whether you’re a first-time builder or experienced in property development, we’ll help you navigate the process of securing the right loan for your construction project, so you can focus on creating the home of your dreams.

Why Choose Ambition for Your Construction Loan?

• Tailored Loan Solutions: We understand that every building project is unique. We’ll provide you with customized loan options to suit your specific needs, budget, and timeline.
• Expert Guidance: Our team has extensive experience in construction financing and will guide you through each step of the process, from application to completion.
• Flexible Drawdown Options: Construction loans typically involve progressive payments, and we’ll ensure your loan is structured to suit the progress of your project.
• Competitive Rates: At Ambition, we work with a range of lenders to offer you competitive interest rates and terms that align with your financial situation.

What Is a Residential Construction Loan?

A Residential Construction Loan is a short-term loan designed to finance the construction of your new home. Unlike traditional home loans, construction loans are typically paid out in stages (or “drawdowns”) as your building project progresses. This means you only pay interest on the amounts drawn down, not the full loan amount until construction is complete.

Construction loans can be used for:

• Land Purchase: Financing the purchase of land on which to build.
• Building Costs: Covering the costs of construction materials, labour, and other related expenses.
• Renovations: If you’re planning a major renovation or extension, a construction loan can help fund the project.

How Ambition Can Help You Secure a Construction Loan

At Ambition, we’re here to make the process of obtaining a construction loan as seamless as possible. Here’s how we help you through the entire process:

• Initial Consultation: We’ll discuss your project in detail, reviewing your plans, budget, and timeline, to ensure we recommend the best loan option for your needs.
• Loan Pre-Approval: Before you start building, we can help you secure pre-approval for your construction loan, giving you confidence that financing is in place.
• Loan Structuring & Drawdowns: We’ll explain how the drawdown process works and structure your loan so that payments align with the progress of your construction. This helps ensure you don’t run out of funds before completion.
• Accessing Additional Funds: If needed, we’ll help you access additional funds during the building process for any unexpected costs or changes to your plans. Finalizing the Loan: Once construction is complete, we’ll help transition your construction loan into a standard home loan (if applicable), making it easier to manage your repayments moving forward.

Benefits of a Residential Construction Loan

• Pay Interest Only on Drawn Amounts: Construction loans are interest-only during the construction period, meaning you pay interest only on the amount of the loan that has been drawn down, helping you manage your cash flow.
• Progressive Payments: Instead of receiving all the funds upfront, your loan is paid out in stages according to the milestones of the construction project, so you don’t need to worry about paying for the entire build upfront.
• Access to Additional Funds: If the costs of your build increase or if you make changes to the plans, you can apply for additional funds to keep your project moving forward.
• Fixed or Variable Interest Rates: Choose the interest rate structure that works best for you, whether you prefer the stability of a fixed rate or the flexibility of a variable rate.

Frequently Asked Questions

• What’s the difference between a construction loan and a regular home loan? Construction loans are specifically designed for building or renovating a home. They are typically short-term loans that are paid out in stages, while regular home loans are usually long-term loans with monthly repayments based on the total amount borrowed. 
• How much can I borrow for a construction loan? The amount you can borrow depends on your income, the value of the land (if applicable), and the estimated cost of the construction. We’ll help you determine your borrowing capacity based on these factors.
• Do I need a deposit for a construction loan? Yes, like other types of loans, construction loans usually require a deposit, which can range from 5-20% of the total cost of the project. This will depend on the lender and your specific financial situation. 
• Can I use a construction loan for renovations or extensions? Yes! If you’re planning on renovating or extending your current home, a construction loan can be a great way to finance the project. We’ll help structure your loan to ensure it suits the scope of the work you intend to carry out.
• How do repayments work during construction? During the construction phase, most construction loans involve interest-only repayments on the amounts drawn down. Once construction is complete, the loan is either paid off or converted into a regular home loan with full principal and interest repayments.

Start Building with Ambition Today!

If you’re ready to take the first step toward building your dream home, Ambition is here to help. Our team of experts will guide you through every stage of the residential construction loan process, ensuring that your project is financed smoothly and efficiently. 

Contact us today to discuss your construction loan options and let us help you turn your dream home into a reality!