Construction Loans
Finance for a new build or eligible major renovation, released progressively as stages complete.
Construction lending works differently to a standard home loan. Funds are released in stages as the build progresses, with a lender inspection or valuation before each draw.
Interest is generally charged only on what has been drawn, so repayments build through the project rather than starting at the full amount. At completion the facility typically converts to a standard home loan. We coordinate the builder’s contract, the staged valuations and the drawdown requirements throughout.
What this typically includes
Progressive drawdown by stage
Interest charged on drawn funds only
Land-and-build or build-only
Converts to a standard home loan at completion
FAQ
Construction Loans questions
How does a construction loan work?
Construction loans typically release funds progressively as agreed stages are completed, with lender inspections or staged valuations before each draw. Interest is generally charged on funds already drawn, and the facility typically converts to a standard home loan at completion. Exact stages and requirements depend on the project and lender.
What happens if the build runs over time or over budget?
Both are common enough that lenders have processes for them, but they need to be raised early. Variations usually require lender approval and may need a revised valuation. We manage that conversation rather than letting it surface at a drawdown.
Do I make full repayments during the build?
Generally not. Interest is charged only on the funds drawn so far, so repayments start small and grow as the project progresses. Many lenders allow interest-only during construction, which we confirm before you commit.
Can I use my own builder, or build it myself?
A licensed builder on a fixed-price contract is the most straightforward path. Owner-builder projects are possible with some lenders, but the panel is much smaller and the requirements stricter. We tell you early which applies to you.
What deposit does a construction loan need?
Lenders assess against the land value plus the build contract, so the deposit is worked out on the combined figure rather than the build alone. Requirements vary by lender and by project type.
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