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Construction Loans

Build Your Vision. We'll Fund the Blueprint.

Construction loans work differently from standard home loans. Progress draws, fixed-price contracts, owner-builder requirements — we handle the complexity so you can focus on the build.

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The Challenge

Construction Loans Aren't Standard Home Loans.

Building a home introduces unique financing requirements that most borrowers don't expect. Here's what makes construction lending different — and why having the right broker matters.

Progress Draws

Unlike a standard loan, construction finance is released in stages as your build progresses — slab, frame, lock-up, fix, and completion.

Fixed Price vs Cost Plus

Lenders assess fixed-price contracts and cost-plus contracts very differently. The structure of your building agreement directly affects your loan approval and conditions.

Builder Approval

Your builder needs to be licensed, insured, and often registered with the lender. We know which lenders approve which builders and can match you accordingly.

Land + Build Packages

Buying land and building separately? The loan structure is different from a house-and-land package. We optimise both for the best rate and terms.

Interest-Only During Build

You only pay interest on what's been drawn down — not the full loan amount. We explain exactly how this works and what your repayments look like at each stage.

Owner-Builder Finance

Planning to build yourself? Most banks won't touch owner-builder loans. We know the specialist lenders who will — and the requirements to qualify.

How It Works

Your Build In 5 Funded Stages.

Construction loans are drawn down progressively. Each stage is inspected before the next payment is released to your builder.

1
15–20%

Slab / Base

Foundation poured and cured. First progress payment released to your builder.

2
20–25%

Frame

Structural frame erected, roof trusses in place. Second draw released after inspection.

3
20–25%

Lock-Up

External walls, windows, doors, and roof completed. Your property is now weather-tight.

4
20–25%

Fixing / Fit-Out

Internal fit-out begins — plumbing, electrical, plastering, kitchen, bathroom installation.

5
10–15%

Completion

Final inspection, certificate of occupancy, builder handover. Final payment released.

Construction Finance For

Whatever You're Building, We've Got You Covered.

First Home Builders

Building your first home? Combine the First Home Guarantee and state grants with construction finance. We structure it all so you don't miss a cent.

Knock-Down Rebuild

Demolishing an existing home to rebuild? This requires specific lender approval, staged valuations, and careful loan structuring.

Investment Builders

Building an investment property? We structure the loan for maximum tax efficiency and rental yield from day one.

Owner-Builders

Licensed to build yourself? We access the specialist lenders that support owner-builder applications — and know what documentation you'll need.

Before You Apply

What You Need Ready To Go.

Construction loans require more documentation than a standard purchase. Here's what lenders want to see — and what we'll help you prepare.

Documentation

  • Council-approved plans and building permits
  • Fixed-price building contract (or cost-plus with itemised schedule)
  • Builder's licence, ABN, and insurance certificates
  • Proof of land ownership or purchase contract
  • Detailed specifications and inclusions list
  • Soil and site reports (if available)

Eligibility & Costs

  • 10–20% deposit of total project cost (land + build)
  • Build must start within 6–12 months of approval
  • Most lenders require completion within 12–24 months
  • Budget for valuation fees, inspection fees, and council charges
  • 10–15% contingency buffer recommended for variations
  • Stamp duty payable on land value only (not build cost) in most states
Common Questions

Construction Loan FAQs

What deposit do I need for a construction loan?
Most lenders require at least 10–20% of the total build cost (land + construction). If you're using the First Home Guarantee scheme, you may be able to build with as little as 5% — but not all lenders allow construction under this scheme. We'll find one that does.
Can I use the First Home Guarantee for a construction loan?
Yes — but only with certain lenders. The guarantee covers the LMI component, allowing you to build with a smaller deposit. We know which lenders participate and how to structure the application correctly.
What happens if my build goes over budget?
If costs exceed your approved amount, you'll need to fund the difference yourself or apply for an increase. Fixed-price contracts protect you from builder cost overruns. Cost-plus contracts carry more risk. We always recommend building a 10–15% contingency buffer into your budget.
How long does construction loan approval take?
Typically 2–4 weeks, depending on the lender and complexity of your build. We pre-check your builder's registration, prepare all documentation upfront, and submit to lenders we know will move quickly on construction applications.
Can I get a construction loan for a renovation?
Yes — but only if the renovation is substantial (usually over $100,000). Minor cosmetic renovations are typically funded through a standard home loan redraw or personal loan. Major structural renovations with council-approved plans can qualify for a full construction loan with progress draws.
What's the difference between a fixed-price and cost-plus contract?
A fixed-price contract locks in the total build cost upfront — the builder absorbs any cost overruns. A cost-plus contract means you pay the actual cost of materials and labour plus a builder's margin, so the final price can vary. Most lenders prefer fixed-price contracts because they're lower risk.

Ready to Build?
Let's Talk Finance.

Book a free strategy call. We'll review your building contract, assess your borrowing power, and find the right construction lender for your situation.

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Or call 1300 080 180