Frequently asked construction questions

There’s a lot that goes into building a home. Luckily, we’re here to answer all your frequently asked (construction) questions!

How do we pay the builder?

RAMS handles that for you, paying your builder on time to keep your build on track.

What are progress payments?

Payments requested from your builder as each stage of the construction is completed.

What happens if I make changes?

Any changes may impact your loan and construction time frame, these are called variations. 

What is a conveyancer?

Someone qualified and licensed to handle all documentation for the sale and or purchase of a property.

What is conveyancing?

The legal process for the transferral of ownership of real estate.

What’s an ATC?

An ATC (Authority to Commence) gives your builder the green light to start construction and is issued by your lender when you provide a series of documents.

Who supplies the ATC?

Your builder provides you the documents which are required for RAMS to issue the ATC.

How long does it take to build a home?

12 months is the average construction time, however RAMS will give you up to 24 months.

When should I select fixtures and fittings?

Early, it is better if you can select your fittings and fixtures before your loan is approved to avoid delays and budget shortfalls.

When do we pay our deposit?

An initial deposit to the builder of around 5% is usually required at the time you sign your building contract.

What about government grants and incentives? 

Chat with your RAMS Home Loan Specialist, they can provide you with current information about eligibility.

What is a home loan tailored for construction?

A loan tailored for construction allows you to pay your builder progress payments at each major stage of construction and pay interest according to these amounts paid.

Does RAMS offer a home loan for construction? 

With RAMS you could get a construction option with our Essential Home Loan, Fixed Rate Home Loan (Packaged), Full Feature Home Loan and Fixed Rate Classic Home Loan. 
 
If you currently have a home loan with another lender, you may be able to refinance that loan with RAMS to take advantage of our construction option.

What's the interest rate for a home loan for construction?

When construction is an option as part of a home loan, the interest rate will be the same as that home loan.
  
Note that RAMS home loans for construction repayments are calculated as interest only. This helps with cash flow during the construction periods. Once construction is complete, the loan can revert (if you choose) back to a principal and interest repayments.

Can I get a construction loan for a new home build?

Home loans for construction are available to people borrowing for a land and house package, for building on land they already have, as well as for major renovations of an existing property.

Already have the home loan and now want to build?

In many cases, you could refinance to a home loan for construction or add a construction option if your current loan offers it. 

As with any type of loan, there are additional guidelines and lending criteria.

Will the bank do a handover inspection for a construction loan?

Before final progress payment is made with a RAMS home loan for construction, there is an 'at completion' valuation. This is done at no cost to you. This is where documentation, certification and insurances are confirmed to ensure that the build has been completed to the lender's satisfaction.

This is an important stage for a secured loan, as the money was lent based on the projected value of the building works at completion.