MFAA Member · ACL 389328 · Construction Specialists
Construction Loan — From land
to keys.
Building new is its own discipline. Staged drawdowns, progress claims, builder contracts, fixed-price clauses, valuations at each stage. We structure the finance from land settlement through to handover so you're not waiting on a bank at every milestone.
Pre-build feasibility.
Before you sign with a builder, we model what's bankable. Lender + LVR + valuation tolerance — modelled in 48 hours. Most clients save $10-30k by checking first.
Builder QS review.
We work with your builder's quantity surveyor reports so the lender's valuation lines up. Mismatches kill construction loans mid-build — we catch them upfront.
Progress-claim management.
Each stage releases funds on lender inspection. We manage the inspection ordering and the builder communication so payments land on time.
From first call to settlement
Easier than you'd think.
Pre-build feasibility
Send your land details + builder quote. We model lender appetite in 48 hours, before you sign builder contracts.
Lender placement
We compare construction-active lenders for your file. Not every lender does construction. Of those that do, appetite varies hugely.
Land settles + build begins
Land draws down first, then staged construction drawdowns follow.
Auto-rollover at handover
Construction loan rolls automatically to standard variable or fixed at completion.
Construction loans library
Browse construction loans guides
Browse our 6construction loans guides, grouped by topic and written in plain English. The full searchable library lives in The Lab.
Building and construction finance
6 guidesLand, builds, granny flats and modular homes, explained.
- What Is Practical Completion in a Construction Loan?
- Vacant Land Loan Guide: How to Finance Buying Land in Australia
- Second Dwelling Finance: How to Fund a Second Home on Your Land
- Financing a Kit or Modular Home: How Modular Home Finance Works in Australia
- Financing a Granny Flat: How Granny Flat Finance Works in Australia
Frequently asked questions.
How does a construction loan differ from a standard home loan?
Construction loans pay your builder in stages (typically 5: slab, frame, lock-up, fix, completion) rather than all at once. You're only charged interest on the drawn-down amount, so repayments build up as the house builds. At completion, the loan automatically rolls to a standard variable or fixed home loan.
Can I get a construction loan with a fixed-price builder contract?
Yes — and lenders prefer it. Fixed-price contracts reduce the risk of cost overruns mid-build, which can blow your loan amount. If you're on a cost-plus or partially-fixed contract, lender appetite narrows and you may need a larger contingency built in.
How long does a construction loan typically run?
Most construction loans have a 12-month construction period (the time you have to complete the build). Some lenders extend to 24 months. After completion, the loan converts to a standard home loan with whatever term you originally chose (typically 25-30 years).
What happens if the build runs over budget?
We build a 10% contingency into the loan structure as a default. If costs exceed the loan amount, you'll need to fund the gap from savings or apply for a variation (which requires another valuation and lender approval). We flag this risk upfront and build buffers in.
Can I be an owner-builder?
Yes — but specialist lenders only. Most banks won't lend to owner-builders. Of those that do, LVR is typically capped at 60-70% (vs 80%+ for licensed-builder loans). You'll also need to provide a detailed build schedule + cost plan + builder's licence (or owner-builder permit) to satisfy the lender.
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