How do progress payments work?

Funds are typically released in stages as construction progresses. Each stage usually requires lender approval before payment is made to the builder.

When do I start making repayments?

Repayments usually begin once funds are drawn. During construction, interest may only apply to the amount released at each stage.

Do I need a fixed-price building contract?

Most lenders require a fixed-price contract before approving construction finance. This helps provide clarity around total project costs.

Can I make changes during construction?

Changes to the contract can affect lender approval and funding. It’s important to discuss any variations before proceeding.

What happens if the valuation is lower than expected?

If a valuation differs from the contract price, it may affect borrowing amounts. We can explain how this may apply to your situation.

Is construction finance more complex than a standard loan?

It can involve additional steps and documentation. Our role is to guide you through the process clearly.

Building your home? Let’s make the finance process clear.

Construction loans work differently to standard home loans. We guide you through how funding is structured, what lenders require, and what to expect at each stage.

Building comes with extra moving parts

Financing a house and land package or construction project involves additional steps compared to buying an established home.

You might be wondering:

How do progress payments work?
When does the loan start?
What documents do lenders require?
How is borrowing capacity assessed?
What happens if building costs change?

We help you understand the structure before you commit.

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Clear guidance. No pressure.

How the process works

A clear, step-by-step approach:

1. Tell us about your build plans
We review your contract, deposit position, and timeline.

2. We assess lender requirements
Construction lending criteria can differ between lenders.

3. We explain how funding is structured
Including progress payments and interest considerations.

4. We guide you through each stage
From approval through to completion.

How construction loans are structured

Unlike standard home loans, construction finance is usually released in multiple in stages.

These may include:

An initial land settlement
Progress payments at defined build stages
Interest charged on funds drawn

Many constructions loan are interest only repayments during the period of the build, moving to principal and interest repayments following completion.

We explain how this structure works and what it could mean for your budgeting if you're building your home.

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What lenders typically assess

When applying for construction finance, lenders generally review:

Your income and employment
Your deposit and savings
The fixed-price building contract
The builder’s credentials
The property valuation

Understanding these early can reduce delays later.

Why work with a broker?

Working with a broker means you don’t have to navigate the process alone. We work directly with your land developer and chosen builder to ensure the process runs as smoothly as possible.

We provide:

Access to a range of lenders
Guidance tailored to your situation
Clear explanations of loan structures
Support through the application process

Our focus is helping you make informed decisions — not rushing you into one.

Frequently asked questions