Build your dream home with the right financing behind you.
Construction loans are more complex than standard mortgages. Payments are made in stages, and the wrong structure can create cash flow stress. We set you up right from the start.
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Plan Your Construction Loan07 4599 4601Who this is for
Construction loans are for anyone building a new home, whether it's a house-and-land package, owner-builder, knockdown rebuild, or investment property build.
- First home buyers using house-and-land packages (also eligible for FHOG)
- Owner-occupiers doing a knockdown-rebuild
- Investors building a new investment property
- Owner-builders (selected lenders only)
- Dual-occupancy and duplex builds
What's included
- Progressive draw-down structure aligned with build stages
- Interest-only during construction (only pay interest on drawn funds)
- Converts to standard loan on completion
- Access to lenders with competitive construction rates
- First Home Owner Grant eligibility for new builds
- Coordination with builder's payment schedules
How it works: step by step
Pre-Construction Planning
We review your building contract, fixed-price quote, and timeline to structure a loan that aligns with your construction schedule.
Loan Approval
Construction loan approval requires a fixed-price building contract and council-approved plans. We submit everything to the lender and manage the approval process.
Land Settlement (if applicable)
If purchasing a house-and-land package, we coordinate land settlement first, then begin the construction loan drawdown.
Progress Draw-downs
As construction hits each stage (slab, frame, lock-up, fixing, completion), we request progress payments from the lender directly to your builder.
Final Inspection & Completion
On completion, we arrange final inspection and draw-down. Your loan converts to a standard home loan and you move in.
Eligibility at a glance
Eligibility varies by lender. Don't let these criteria put you off: we often find solutions that aren't obvious upfront.
- Fixed-price building contract from a registered builder
- Council-approved building plans
- Standard eligibility criteria (income, deposit, credit history)
- Land ownership or purchase simultaneous with construction
- 10–20% deposit (some lenders allow 5% with LMI)
- Property must be intended as residential dwelling
Common questions
Do I pay the full loan amount upfront during construction?
No. A construction loan is drawn down in stages as building progresses: typically slab, frame, lock-up, fixing, and completion. You only pay interest on what's been drawn, which keeps your costs manageable during the build.
Can first home buyers use a construction loan?
Absolutely. In fact, building a new home can be one of the best options for first home buyers because new builds are typically eligible for the First Home Owner Grant ($30,000 in QLD). House-and-land packages are popular precisely for this reason.
What if the build goes over budget?
This is why a fixed-price contract is so important. If costs exceed the approved loan amount, you may need to fund the difference yourself. We review your building contract carefully and include a contingency discussion in our initial planning.
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