The Stages of Building a Home in Australia
Building a home is a rewarding journey that lets you create a property tailored to your vision. However, understanding the process can make all the difference in achieving a smooth and successful build. Let’s break down the key stages of building a home and how a construction loan aligns with this process.
At Lagos Financial, we guide you through each stage, ensuring your construction loan supports your project every step of the way.
Contract & Deposit
The journey begins with securing your builder and signing the construction contract. At this stage:
-
- You’ll finalise detailed plans, including timelines and cost estimates.
- Pay the initial deposit to your builder, often covered by your personal funds or the first drawdown of your loan.
Tip: Work closely with your lender to ensure all documents meet financing requirements.
Slab Down
This is where the physical building starts. The foundation of your property is prepared, which includes:
-
- Ground levelling and excavation.
- Laying the concrete slab.
- Plumbing installation for underground pipes.
Loan Insight: The first loan drawdown is usually released here, covering initial construction costs.
Frame Stage
The skeleton of your home takes shape during this phase. This includes:
-
- Erecting walls, roof trusses, and internal structures.
- Completing brickwork, roofing, and windows (where applicable).
Lender Involvement: Your lender will inspect the progress before releasing the next payment.
Lock-Up Stage
Your home is now “locked up,” meaning external construction is completed to secure the building. This includes:
-
- Installing external walls, windows, and doors.
- Making the property weatherproof.
Tip for Property Investors: At this stage, you can start estimating the timeline for future tenants or resale.
Fit-Out Stage
The interior comes to life during the fit-out phase. Tasks include:
-
- Installing fixtures such as cabinets, plumbing, and electrical wiring.
- Adding internal walls, flooring, and insulation.
Loan Insight: Progress invoices are crucial here to ensure timely payments and smooth progress.
Completion Stage
The final stage involves finishing touches and inspections. Tasks include:
-
- Painting, landscaping, and general cleaning.
- Ensuring all agreed works are completed to satisfaction.
What Happens Next?
Once completed, your lender transitions the construction loan to a standard mortgage with principal and interest repayments.
How Lagos Financial Supports You Through Every Stage
With our tailored construction loans guidance, you can rest assured that funding aligns with your building timeline. Our team provides guidance on:
-
- Ensuring progress payments are released efficiently.
- Managing interest-only repayments during construction.
- Structuring your loan for long-term financial benefits after completion.
FAQs About Building a Home
How long does it take to build a home?
The timeline varies but generally ranges from 6–12 months, depending on the project’s complexity and weather conditions.
What happens if there are delays?
Keep your lender informed of any changes. A well-structured construction loan can provide flexibility for delays.
Can I make changes to the design mid-construction?
Yes, but discuss this with your builder and lender. Changes may affect costs and timelines.
Do I need to hire an independent inspector?
While your lender conducts inspections, hiring an independent inspector can provide additional peace of mind.
Get Expert Guidance from Lagos Financial
Building a home requires careful planning and financial support. Book a complimentary assessment to discuss how we can assist with every stage of your journey. Use our loan calculator to explore your options today!