Building a New Home is an Exciting Journey. The Finance Shouldn't Be the Hard Part.
A construction loan is fundamentally different from a standard mortgage. Funds are released in stages as your build progresses, protecting you and the lender. This process requires careful planning and expert management.
We specialise in structuring construction finance to ensure you have the funds you need, when you need them, making the build process as smooth as possible.
We Build Your Finance, So You Can Focus on Building Your Home
Stage-Drawdown Expertise
Builder & Contract Review
Interest-Saving Strategies
Seamless Transition to Permanent Mortgage
Understanding the Progressive Payment Process
A construction loan is tailored to the stages of your build:
Base Stage: Slab down or foundations laid.
Frame Stage: Wall and roof framing completed.
Enclosure Stage: Roof on, windows/doors in, house is weathertight.
Fixing Stage: Internal linings, cabinets, plumbing/electrical rough-in.
Completion Stage: Practical completion, all finishes done, ready for code compliance (CCC).
Your lender will send a valuer to inspect the property at each stage before releasing the next payment to your builder.
Tailored Finance for Your Build
We provide advice and access to finance for:
Owner-Builder Construction: Financing your dream home on a new section or replacing an existing property.
Turn-Key Builds: Finance for projects where a developer manages the entire build on your behalf.
Land & Construction Packages: A seamless loan solution for purchasing a section and building your home.
Major Renovations & Extensions: Finance for significant home alterations that increase property value.
The Advantages of a Construction Loan
Progress-Based Payments: Pay interest only on the amount drawn down, helping manage cash flow during the build.
Professional Oversight: The lender’s progressive valuations provide an independent check on the build’s progress and quality.
One Application Process: You secure your end mortgage at the beginning, avoiding the need to refinance once the house is built.
Important Considerations:
Contingency Buffer: Lenders typically require a 5-10% contingency buffer in your loan to cover any unforeseen cost overruns.
Fixed-Price Contract: A detailed, fixed-price building contract is essential for loan approval.
Frequently Asked Questions About Construction Loans
Typically, you will need a 20% deposit of the total completed value (land + build). This can come from equity in existing property, savings, or a combination of both.
You will need:
Copies of your signed building plans and specifications.
A fixed-price building contract from a licensed builder.
Council-approved building consents.
Quotes for any additional work not included in the main contract.
This is what the contingency buffer is for. If costs exceed this, you will need to fund the difference yourself. We help structure your loan to minimise this risk from the outset.
Some lenders may consider this if you are a licensed building practitioner and can provide detailed costings, but it is less common. Most prefer a registered professional builder.
Contact Us
Ready to unlock your financial potential?
Have a mortgage or business loan question? Simply ask us with no obligation!
We’re here to listen and guide you. Whether you’re buying your first home, refining your investment strategy, or seeking business finance, our expert team is ready to provide personalised advice tailored to your goals.
Reach out today for a free, no-obligation consultation—let’s start the conversation about your success.
