How Do Construction Loans Work?

A construction loan is released in progressive payments (draws) as your build is completed.

• Progress Payments: Funds are released at each stage: slab, frame, lock-up, fixing, and completion.
• Interest-Only During Build: You only pay interest on the amount drawn down, not the full loan amount.
• Transition to P&I: Once construction is complete, the loan typically converts to a standard principal and interest mortgage.
  Can You Really Buy Property with Your SMSF?
  Yes! Using your SMSF to purchase property can be a powerful wealth-building strategy, but the rules are strict.
• Loan Structure: The loan must be a Limited Recourse Borrowing Arrangement (LRBA).
• Purpose: The property must meet the Sole Purpose Test of providing retirement benefits.
• Strict Rules: The property cannot be purchased from a related party and must be held in a separate trust.

 Why You Need a Specialist Broker

• Navigating Complexity: We ensure your application meets all the strict lender and regulatory criteria.
• Lender Relationships: We work with lenders who specialise in these complex loan types.
• Peace of Mind: We guide you through each step, ensuring your project or investment is set up for success.