04 / SERVICES
CONSTRUCTION & RENOVATION
Building, rebuilding or undertaking a major renovation. Finance planned around the contract, construction budget, valuation and progress-payment process.
HOW IT WORKS
FINANCE THAT FOLLOWS THE BUILD.
Construction loans generally release funds as building stages are completed, with interest charged on the amount drawn. My background in construction and property development brings an understanding of building contracts, costs and progress payments to the lending process.
GOOD TO KNOW
PAID IN STAGES
Funds released as stages are completed, subject to the lender.
INTEREST ON DRAWN FUNDS
Interest is usually charged only on what's been drawn.
VALUED AS COMPLETE
Lenders commonly assess the property's estimated value on completion.
FIXED-PRICE CONTRACT
Many residential construction lenders require a fixed-price contract with a licensed builder.
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FIRST HOME BUYERS
Any placeholder sentence.
WHAT WE COVER
FIRST HOME BUYERS
From pre-approval to settlement day, including government schemes.
Selling and buying in the right order.
Upgrading and downsizing
Buying your next home before the current one sells.
Bridging finance
Refinancing
A sharper rate or a better structure, with switching costs weighed first.
SELECT FOR DETAILS
04
SMALL DEVELOPMENTS
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03
RENOVATIONS & FIT-OUTS
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02
KNOCK-DOWN REBUILD
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01
LAND & NEW BUILDS
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WHAT WE COVER
THE PROCESS
01
DISCOVERY CALL
Your goals, circumstances and timeframe
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Preliminary review
Position and borrowing options reviewed
03
Strategy
Lenders and structure compared
04
Application
Prepared and submitted to the chosen lender
05
Approval & settlement
Coordinated to settlement
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Ongoing support
Loan reviewed as your needs change
COMMON QUESTIONS
HOW DO PROGRESS PAYMENTS WORK?
Construction loans are generally released in stages rather than as one lump sum. Typical stages include the slab, frame, lock-up, fit-out and completion, although the exact schedule depends on the building contract.
Your builder submits a progress claim, which the lender may verify before releasing funds. During construction, repayments are often interest-only on the amount drawn, rather than the full approved construction loan.
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WHAT IF THE FINISHED VALUATION IS LOWER THAN EXPECTED?
The lender generally considers the property's estimated value on completion, not simply what the build costs.
For example, if the finished property is valued at $1 million and the lender will advance 80%, the maximum loan would be $800,000, subject to serviceability and other criteria. If you need $900,000 to complete the project, that leaves a $100,000 funding gap to resolve before proceeding.
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WHAT HAPPENS IF THE BUILD COSTS MORE THAN PLANNED?
Variations, site conditions and material or labour costs can push a build over budget. If a $600,000 build increases by 10%, that's another $60,000 to fund.
Lenders don't automatically increase an approved construction loan. Additional borrowing may require a fresh valuation and serviceability assessment, so having available funds for variations and unexpected costs is important before construction starts.
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CAN I BUY LAND NOW AND BUILD LATER?
Yes. You may be able to finance the land first and arrange construction funding when you're ready to build. Vacant-land lending criteria, deposit requirements and building timeframes vary. Your existing land loan may also need to be reviewed when construction begins.
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CAN I GET A CONSTRUCTION LOAN AS AN OWNER-BUILDER?
Yes, but fewer lenders accept owner-builder projects and deposit requirements can be higher. Depending on the lender, borrowing may be limited to around 60–70% of the property's value.
You'll generally need relevant permits, approved plans, detailed costings, a construction schedule and evidence you can complete the work. Lenders may also require a larger contingency and closer control over progress payments.
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HAVE ANOTHER QUESTION? BROWSE THE FAQ
LET'S TALK.
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