Construction Loans
Building a home or completing a major renovation usually needs a different type of finance to a standard property purchase. The Loans Suite can help you understand construction loan options, staged payments and lender requirements before your build begins.
Support Before You Start Building
Construction lending has extra moving parts, including contracts, plans, valuations and progress payment stages. The Loans Suite can help you understand what lenders may need before you commit.
Guidance Through Progress Payments
Most construction loans are paid in stages as work is completed. We can help explain how drawdowns work and what to expect as your builder reaches each milestone.
Loan Options for Different Building Plans
Whether you are building a new home, renovating or completing a knockdown rebuild, The Loans Suite can help you compare lending options that suit your project.
What You Need to Know About Construction Loans
Construction loans are assessed differently to standard home loans, and the details of your build can affect your approval, valuation and repayments.
Lenders will usually need a fixed-price building contract, plans and council approvals.
Funds are generally released in stages rather than as one lump sum.
Changes to the build, budget or timeline may affect your loan approval or drawdowns.
FAQs About Construction Loans
How does a construction loan work?
A construction loan usually releases funds in stages as each part of the build is completed. These stages may include slab, frame, lock-up, fixing and completion, depending on the lender and builder contract.
Do I need a fixed-price building contract?
Most lenders prefer or require a fixed-price building contract because it helps confirm the cost of the project. Some lenders may consider other arrangements, but requirements can vary.
Do I pay interest on the full loan amount straight away?
Usually, interest is charged only on the amount drawn down during construction. This means repayments may increase as more funds are released throughout the build.
Planning to build or renovate?
The Loans Suite can help you understand your construction loan options, prepare for lender requirements and move through each stage with clear guidance.
