Construction loans work very differently from standard home loans — funds are released in progressive drawdowns as each stage of the build is completed, not as a lump sum at settlement. Getting the structure, lender and drawdown schedule right makes the entire build process smoother and more predictable.
Book a free consultationNew home construction — owner-occupied or investment builds with a registered builder, using a fixed-price building contract.
Knock-down rebuild (KDR) — demolishing an existing dwelling and constructing a new home on the same title, with or without a new land purchase.
Major renovations — structural or significant renovations funded progressively, where the scope of works requires a construction loan rather than a personal or top-up loan.
Each build type has different lender requirements, approval timelines and drawdown structures — we navigate them all.
Building a new home on vacant land or a block you already own. The most straightforward construction loan type — most lenders are comfortable with fixed-price contracts from registered builders and release funds at each of the five standard build stages.
We help you understand land loan options if the block isn't yet purchased, manage the transition from land loan to construction loan, and select a lender whose drawdown process aligns with your builder's schedule.
Demolishing your existing home and building a new one on the same land. KDR projects introduce additional complexity — you may need bridging or rental accommodation during the build, and lenders assess the land value independently of the demolished structure.
We work through the full financial picture: your existing mortgage, demolition costs, temporary accommodation and construction finance — structured as a single cohesive plan.
Structural additions, extensions or whole-home renovations that exceed what a personal loan or top-up can comfortably cover. Where works involve a registered builder and a fixed-price contract, a construction loan typically offers better rates and flexibility than a personal loan at this scale.
We determine whether a construction loan, a cash-out refinance or a combination is the right approach for your renovation scope and budget.
Most lenders release construction funds in five progress payments, tied to inspections at each stage. You only pay interest on funds drawn — not the full loan amount — during the build.
The foundation is complete — concrete slab poured or base constructed and inspected. First drawdown released after the lender's valuer confirms completion of this stage.
Structural framework, roof trusses and external wall frames erected. The second drawdown is released once the frame stage inspection is passed — usually the largest single release.
External walls, roof, windows and doors are in place — the property is now weatherproof and lockable. Third drawdown released after lock-up inspection.
Interior fit-out underway — plasterboard, internal doors, kitchen and bathroom fixtures, floor coverings, electrical and plumbing rough-in. Fourth drawdown released after fixing stage inspection.
Build complete and ready for occupation — final inspection, occupancy permit issued and defects list resolved. Final drawdown released and loan transitions to standard principal-and-interest or interest-only repayments.
We stay involved through every stage — not just at the start.
We arrange pre-approval based on your land purchase (or existing land value) and your total project cost — so you know your borrowing capacity before engaging a builder.
Once you have a fixed-price building contract and plans, we submit the full application. The lender commissions a valuation based on the completed project value.
We coordinate each progress payment request with the lender — submitting builder invoices, arranging stage inspections and ensuring funds are released promptly so your build stays on schedule.
At practical completion, the loan transitions to its ongoing structure. We review your rate and repayment terms at this point — often an opportunity to refinance to a more competitive ongoing product.
Many brokers place the construction loan and step back. We stay active through every drawdown — chasing lenders for prompt release, resolving valuation issues and making sure your builder isn't held up waiting for funds.
Construction lenders vary significantly in how quickly they process drawdown requests. A lender with a slow drawdown process can stall your builder and result in delay costs that far outweigh any rate saving. We select on process quality, not just headline rate.
If the lender's end-value assessment comes in below your project cost, your loan approval may be reduced. We anticipate this risk before application — selecting comparable sales for the valuer and advising on project specifications that support the valuation.
You only pay interest on drawn funds during the build — so your repayments start very low and increase with each stage payment. We model this cashflow timeline so there are no repayment surprises during construction.