A construction loan is generally released progressively as your build moves through different stages, rather than providing the full loan amount upfront. Your lender makes progress payments to the builder as each agreed construction stage is completed.

The amount you need will depend on the total land and construction costs, your existing equity or available funds, and the lender's requirements. We can assess the complete project to determine how much you may be able to borrow and what contribution you'll need.

Progress payments are payments made to your builder as construction reaches specific stages. These commonly include deposit, base/slab, frame, lock-up, fixing and completion stages, although the exact schedule will depend on your building contract.

Generally, no. During construction, interest is typically calculated on the amount of the loan that has actually been drawn down rather than the entire approved construction loan. Your repayments therefore generally increase as more funds are released throughout the build.

Yes. Construction finance can potentially be used to demolish an existing property and build a new home. The lender will assess factors including your existing property and loan, land value, demolition and construction costs, building contract and the expected value of the completed property.

Yes. Construction loans can be used for both owner-occupied homes and investment properties. For an investment build, lenders may also consider factors such as expected rental income when assessing your application.

The lender will generally arrange an “as if complete” valuation using your land, building contract, plans and specifications. This estimates what the property is expected to be worth once construction has been completed.

With a Fixed Price Building Contract, variations need to be requested and approved. Variations generally are not covered by your approved construction loan. Depending on the circumstances, you may need to contribute additional funds yourself or have further borrowing assessed and approved by the lender. It's important to allow for some unexpected costs when planning your build, in case materials included in your contract are not available, or for any unforeseen hinderances during the build.

In addition to the usual income and financial documents required for a home loan, lenders will generally require documents relating to the build, such as your signed building contract, plans, specifications and progress payment schedule. Additional documents may be required depending on the project and lender.

Yes. We can assist with finance for projects such as building a duplex or multiple dwellings on an existing or newly purchased block of land. Depending on the size and nature of the project, this may be financed through a standard construction loan or require specialist development finance. We can assess the project, expected costs, end values and your financial position to determine which lending options may be suitable.