CONSTRUCTION LOANS
Finance for Your Build, From Contract to Completion
Building a home is different from buying an existing one. The lender needs to assess the building contract, plans, valuation, your financial position, and how the project will be funded as work progresses. We compare construction loan options against your income, available funds, project costs, and timing, then manage the application through to settlement.
40+
Lenders, including banks, non-banks and specialist funders
48 hours
Working target once the file is ready to submit
7+ years
In mortgage broking. You deal with Milo Marinkovic
Remote
Phone, video and electronic documents from the first conversation
Building a property
The build you are planning changes the finance
A new build, a knockdown rebuild and a major renovation can need different documents and lender rules. We start with the project you are actually planning.
01
New home construction
The contract, plans, valuation and progress schedule set what the project needs before a lender is chosen.
02
Knockdown and rebuild
The land, the current property, demolition and the new build are assessed together.
03
Major renovation
Costs often sit outside the main building quote. We review the scope, your contribution and how the lender will treat the work.
04
Building with existing equity
Equity in another property may fund part of the project. We check the existing loan, the equity, income and the construction cost.
Why The Lending Institute
The work behind a construction application
A construction loan needs more than a borrowing estimate. We read the finances and the project documents, then compare lenders that will take that build.
01
The project is checked early
Contract, costs, valuation and your contribution are reviewed before we choose where to apply.
02
Lender policy is part of the comparison
Lenders differ on the property, the builder, the documents and the progress payments. We compare the rules that apply to your project.
03
The costs are explained
Rate, fees, structure and the costs that belong to the build, not the interest rate on its own.
04
One broker follows the file
Milo handles lender questions, missing documents, valuation requirements and conditions through to settlement.
Progress payments
The loan is drawn as the build progresses
01
Day 0
The project is assessed
The lender reviews the application, contract, plans and valuation before construction finance is approved.
Credit impact — none
02
Days 1–5
Each stage is completed
The builder invoices the stage. The lender may ask for documents or an inspection before the next payment.
Credit impact — soft enquiry only
03
Days 5–7
Funds are released against the stage
Once the lender's requirements are met, that stage's amount is released under the agreed payment process.
Credit impact — enquiry recorded
04
Weeks 3–6
Final stage
The last payment may need a final valuation, inspection or insurance, depending on the lender and the project.
Credit impact — account reported
Work out the repayments through the build
Model the end position on the full loan amount, check your LVR against the 80% threshold, and estimate stamp duty on the land component.
Open the calculatorsCommon questions
Construction questions
If yours is not here, ask it directly — you will get a straight answer, not a callback form.
Ask a broker →No. Interest is charged only on the funds actually released, so your repayment starts small and grows with each progress draw. Most people budget for the full interest-only repayment from about the lock-up stage onwards, and for rent or an existing mortgage at the same time.
Variations are generally your responsibility. The lender approved a facility against a fixed contract price, and increasing it requires a new application and often a new valuation. This is why a contingency of five to ten per cent sitting outside the loan matters so much.
Only with a small number of lenders, usually capped at 60% to 70% LVR, and generally requiring evidence of relevant trade or project management experience. It is possible but it narrows the panel dramatically and the pricing reflects that.
Between three and fifteen business days depending on the lender and how complete the paperwork is. We choose lenders partly on draw turnaround, because a slow lender means a builder standing idle and, on some contracts, charging you for the delay.
You cover the shortfall in cash or the LVR rises, which may trigger LMI. Ordering the valuation against plans before contracts are signed is the way to avoid discovering this at slab stage.
Related services
Often looked at alongside this
Supporting paragraph for this section.
Get started
Talk through the build before you apply
You do not need every document on the first call. Tell us the project, the rough numbers and the timing. We will say which contract and valuation items the lender will ask for.
Valuation first
Checked against plans before contracts are signed.
Draws chased
We manage every progress payment directly.
One broker
Same person from approval through to completion.