Question 1

How do progress payments work during the build?

Accepted Answer

Funds are released in five stages: slab, frame, lock up, fixing and completion. Your builder invoices, the lender inspects or values as required, and each draw generally takes 3 to 7 business days. We manage that process so you are not chasing the bank mid build.

Question 2

Do I pay full repayments while the house is being built?

Accepted Answer

No. Interest is charged only on the amount drawn, so early repayments are small and rise with each stage. Full repayments start once the loan is fully drawn at completion, and we build that step up into your budget from the start.

Question 3

What is my construction loan actually assessed on?

Accepted Answer

The lower of land plus build cost or the on completion valuation. Most construction lending sits at 80 percent of that figure, with up to 95 percent available for eligible owner occupiers. We order the valuation early so any shortfall is known before you commit.

Question 4

What can go wrong with a fixed price building contract?

Accepted Answer

Lenders reject or exclude certain items such as owner supplied work, allowances that are not fixed, and out of contract landscaping or driveways. We review the contract for those items first so the funding gap does not appear halfway through the build.

Question 5

My off the plan purchase settles next year. Will my approval still be valid?

Accepted Answer

Usually not without a refresh. Valuations expire in about 90 days and lender policy can change, so approvals normally need updating close to settlement. We diarise it and reconfirm your position well before the completion notice arrives.

Question 6

How long can the build period run?

Accepted Answer

Most lenders fund a build period of up to 24 months. Extensions are possible but need to be requested before the deadline. If your builder slips, we deal with the lender early rather than at the point the facility expires.

Question 7

What does Vairo Finance do for construction & off-the-plan?

Accepted Answer

We structure the land and build components correctly, review the fixed price contract for the items lenders reject, order the on completion valuation early, and manage each progress payment through to handover so you are not chasing the bank mid build.

Question 8

What do the numbers usually look like for construction & off-the-plan?

Accepted Answer

Loans are assessed on the lower of land plus build cost or the on completion valuation. Most construction lending sits at 80 percent of that figure, with up to 95 percent available for eligible owner occupiers. Interest is charged only on the amount drawn, so early repayments are small and rise with each stage.

Question 9

How long does construction & off-the-plan finance take?

Accepted Answer

Progress payments are usually released in five stages: slab, frame, lock up, fixing and completion, with each draw taking 3 to 7 business days once the builder invoices. Off the plan approvals normally need to be refreshed close to settlement because valuations expire in about 90 days.

Construction & off-the-plan.

What we do

How the numbers usually look

Timelines

ADF pay, allowances and postings.