You only pay interest on what the builder has actually drawn
Construction finance releases funds in stages against completed work, valued each time. It is more administration than a standard loan, and the administration is where most of the delays come from.
Four ways people build
Lender appetite differs sharply between them. The contract type decides the lender list before anything else does.
House and land package
Land settles first on a standard loan, then the build draws down in stages. The cleanest version of construction finance and the one every lender on the panel will consider.
Knock-down rebuild
You own the land already, so equity usually covers the deposit. The valuation is done on the completed dwelling, and demolition costs need to sit inside the contract to be funded.
Custom build on land you own
An architect-designed build with a fixed-price contract from a licensed builder. More variation risk, so lenders scrutinise the contract and the builder more closely.
Owner-builder
The hardest to finance by a wide margin. Most lenders decline outright; the handful who consider it cap the LVR sharply and want evidence of relevant experience.
What a build costs to finance
A $420,000 fixed-price build on land already owned, with the facility drawn across five stages.
Indicative only, as at March 2026, assuming a 14-month build and staged drawdowns. Interest during construction depends entirely on how quickly stages complete. Lending criteria, fees and charges apply.
Where construction files go wrong
Rarely at approval. Almost always mid-build, when a draw is delayed and the builder stops work.
Real lender comparison, in writing
Your file is run against the pricing and credit policy of every lender on our panel — not the three a bank branch can offer. You receive a written shortlist with the rate, the fees and the reason each lender made the list.
A lending strategy built around your position
Offset versus redraw, fixed versus variable, split structures, ownership through a trust — the structure is chosen for the next five years, not just the first repayment.
Guidance from people who read credit policy
Every broker here holds a Diploma of Finance and Mortgage Broking Management and has placed files with the lenders they recommend. We know which policies bend and which do not.
We stay on the file until it settles
Valuations, credit queries, conveyancer timelines and settlement bookings are ours to chase. You hear from us before you have to ask.
- —Valuation on completion comes in below the contract price plus land
- —Builder not licensed in the state, or lacking adequate insurance cover
- —Cost-plus or non-fixed contracts declined by most of the panel
- —Draws delayed because invoices and inspection reports arrive incomplete
- —Valuation ordered against plans before you sign the building contract
- —Builder credentials and insurances verified upfront, not at first draw
- —Lenders selected for draw turnaround, which varies from three days to three weeks
- —We chase each progress payment directly so the builder is never waiting on paperwork
Understand → Compare → Apply → Settle
Understand your goals
Twenty minutes, no forms. What you are buying, what you earn, what you owe and what you have saved.
Credit impact — noneExplore your options
The file is built properly, then run against all forty lenders. You receive a written shortlist with rates and fees.
Credit impact — soft enquiry onlyApply
A pre-qualified application to a lender whose policy you already meet. We order the valuation and manage the assessment.
Credit impact — enquiry recordedSettle
Unconditional approval, loan documents, settlement booked with your conveyancer. The rate review is diarised.
Credit impact — account reportedWork 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.
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.
Get the finance sorted before you sign the contract
Send us the plans and the builder quote. We will confirm the valuation position and which lenders will actually fund it.