Start with the scope
Separate the purchase or existing mortgage from the proposed work, consent requirements, fixed-price or trade evidence, contingency, and the cash needed to keep the household going during delays.
How construction lending differs
A lender may release approved funds in stages as work progresses and evidence is supplied. The facility, valuation, builder, contract, drawdown, and inspection requirements are lender-specific; do not assume a standard schedule.
Test cost and timing risk
Price changes, variations, consenting, shortages, weather, builder failure, interest during construction, rent or temporary accommodation, and a delayed completion can all increase the funding need.
Keep value conditional
A renovation may improve use or condition, but the money spent does not automatically become equity or support a lower rate. A later valuation is a separate professional opinion and lender decision.
Protect insurance and records
Check insurance during the work and after completion, ask about unconsented work, retain contracts, invoices, variations, approvals, photographs, and completion evidence, and use qualified professionals for technical questions.
Evidence categories to organise
- Scope and consent questions
- Builder and contract evidence
- Progress-payment schedule
- Contingency and delay budget
- Valuation and lender conditions
- Insurance during and after work
- Invoices, approvals, and completion records
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.