Construction Loans generally involve a number of key phases. While every lender has different draw down stages, generally these are:

• Flooring / Slab Down Stage (during the concrete or timber flooring).
• Framework Stage (during the development of framework).
• Lock up Stage (windows, doors, walls).
• Fit Out Stage (bathrooms, kitchens).
• Completion Stage (completion of the property).

Each lender uses a valuer to assess the land and proposed construction. The lender also monitors the construction process and only makes progress payments when the builder has reached certain objectives and met satisfactory standards.

The borrowers provide invoices to the lender who controls payments to the builder. When the construction period is completed the construction loan can easily revert into any one of the standard suite of home loan products available.