A construction loan broker who coordinates with the builder.
A construction loan broker handling progress draws, fixed-price contracts, council approvals and lender inspections. We sit between the builder and the lender so the build doesn't stop waiting on a payment.
The shape of a construction loan.
Six concepts that recur on every construction file. The detail varies by lender; the shape doesn't. Worth running the repayment calculator against the end debt figure so you know what month one looks like once the build finishes and the loan converts to P&I.
Land plus construction
Single loan covering the land purchase and the build. Land settles first, then progress draws on the build start.
Construction only
You already own the land. The construction facility funds the build against the existing land equity.
Progress draw schedule
Five stage payments is standard: slab, frame, lockup, fixing, completion. Lender pays the builder direct after each inspection.
Interest-only during build
You only pay interest on what's been drawn, not the full loan amount. Repayments grow as the build progresses.
Owner-builder loans
Smaller lender panel, tighter LVR (usually 60% to 70%), more documentation. Doable but it's the harder path.
Fixed-price building contract
Most lenders insist on a fixed-price contract with a licenced builder. Variations need to be in writing and approved.
The progress draw stages.
Five payments is the standard schedule. Each one needs an invoice and an inspection before funds release. If land's the first move, the stamp duty estimator gives you the upfront state cost on the block.
- 01Slab
Foundation poured. First draw, typically 15% to 20% of the build.
- 02Frame
Frame up, roof on. Second draw, around 20% of the build.
- 03Lockup
External walls, windows, doors all secured. Third draw, around 20%.
- 04Fixing
Internal fit-out: cabinetry, plasterboard, tiling. Fourth draw, around 25%.
- 05Completion
Final inspection, occupancy certificate. Final draw, around 15% to 20%, and loan converts to P&I.
What we'll need to start.
- Land contract or title
- Settled land, or contract of sale
- Fixed-price contract
- From a licenced builder
- Plans and approvals
- Council DA or building approval
- Builder licence
- And certificate of currency for insurance
- Borrower position
- Income, expenses, deposit evidence
- Typical LVR
- 80% with LMI, 90% in some cases
For credit-related disclosures, see the Credit Guide.
How construction lending works.
Funds release in stages, not all at once. Interest is calculated on the drawn balance. Most construction loans convert to a standard P&I home loan once the build is complete and a final inspection is signed off.
Fixed-price building contract, building licence, certificate of currency for insurance, construction plans, council approval, and the progress payment schedule. Some lenders also want builder financials.
Once an invoice is submitted, the lender orders an inspection. Most inspections complete within 3 to 5 business days, then funds release to the builder within another 2 to 3 days. Plan for about a week per draw.
Yes, but the lender panel is smaller and LVR is tighter (usually 60% to 70%). You'll need an owner-builder permit and detailed cost breakdown. Most lenders prefer a licenced builder for risk reasons.
Variations need to be funded either from the contingency in the loan, additional cash from you, or a top-up loan if equity allows. Lenders won't release beyond the contract value without a re-assessment.
Yes. FHOG, the First Home Guarantee, and state stamp duty concessions all apply to new builds in most states. We check the current rules and coordinate with the build timeline. See First Home Buyer Loans.
Continue reading
- First home buyer loansSchemes that apply to new builds.
- Home loansWhat the loan converts to after completion.
- Investment property loansBuild-to-rent and investor construction.
- Commercial property loansCommercial construction and development finance.
- Finance BrokingThe pillar page covering the full broking service.
Keep the build moving.
A 30-minute call sets up the lender, the draw schedule, and the documentation list. Free, no paperwork to start.