Construction finance requires a lending structure aligned with the project, contractual obligations, borrower contribution and staged funding requirements.
At Loan Studio, our specialist construction loan brokers support clients from project assessment and lender selection through to approval, progress drawdowns and completion. With extensive construction lending experience and access to a broad panel of bank and specialist lenders, we identify finance solutions suited to each project and borrower.
We work with an extensive panel of Australia's leading banks and non-bank lenders to find you the right fit.
A construction loan is generally established as an approved facility from which funds are progressively drawn as construction milestones are achieved.
For standard construction projects, common stages include:
01
Deposit / Initial Stage
Project commencement and initial contractual payment
02
Slab / Base
Site preparation, foundations and base works
03
Frame
Structural framework completed
04
Lock-Up
External structure secured
05
Fixing
Internal fixtures, fittings and finishing works
06
Completion
Final works, assessment and final drawdown
Actual stages, terminology and payment schedules depend on the construction contract and lender requirements.
We assess the proposed project, property position, construction budget, borrower contribution, income, liabilities and anticipated timeframe.
Borrowing capacity, servicing and the overall funding position are assessed to identify potential constraints before significant contractual commitments are made.
Suitable construction lenders are compared across policy, servicing requirements, pricing, fees, valuation methodology and construction conditions.
Loan Studio prepares the finance application and coordinates the supporting financial and construction documentation.
We assist through lender valuation, credit assessment, outstanding conditions and formal approval.
During construction, we provide guidance regarding progress claims, lender requirements and staged drawdowns.
We assist with final drawdown requirements and review the lending structure following completion.
The lender you choose and how the finance is structured can influence how smoothly funding works throughout your build. A construction loan broker brings specialist lending knowledge to those decisions.
Assess suitable options across a broad lender panel based on the project type, borrower position, servicing requirements and lender construction criteria.
Review land value, construction costs, existing debt, available equity and borrower contribution to establish an appropriate funding structure.
Assist with the contracts, plans, specifications, permits, valuations, builder information and supporting documents required for credit assessment.
Provide guidance through progress claims, inspections, lender conditions and staged drawdowns as construction milestones are completed.
Support finance-related communication between the borrower, lender, builder, valuer and other relevant parties throughout the transaction.
Remain involved beyond formal approval, providing ongoing assistance through construction drawdowns, final funding and completion.
Construction projects can change after finance is approved. We help you understand the funding impact and address issues early, before they create unnecessary delays or shortfalls.
Valuation Comes in Lower Than Expected
The impact: Your available borrowing may reduce, or your required contribution may increase.
How we help: We review the valuation and funding position and assess suitable options with you.
Building Costs Increase
The impact: Variations and cost overruns can create a gap in your approved funding.
How we help: We assess how the additional costs affect your facility and available contribution.
Your Building Contract Changes
The impact: Material changes may require updated documents, lender reassessment or a revised valuation.
How we help: We help coordinate the finance requirements before the changes affect your funding.
Construction Is Delayed
The impact: Delays can affect approval validity, lender conditions and construction timeframes.
How we help: We work with you to understand the lender requirements and keep the finance position on track.
Your Project Falls Outside Standard Lending Policy
The impact: Some lenders may not accommodate your project type, builder or construction structure.
How we help: We assess suitable options across our lender panel based on the specifics of your project.
Your Application Has Been Declined
The impact: A decline can delay the project and may indicate a credit, servicing or lender-policy issue.
How we help: We review the circumstances and assess whether an alternative lending approach may be available.
Before committing to a building contract, it is important to understand the complete funding position, not simply the contract price.
Construction projects can include costs outside the primary building contract, including site works, demolition, upgrades, variations, professional fees, external works and contingency requirements. If these costs are not factored into the finance structure early, they can create a funding shortfall during construction.
A Loan Studio construction loan broker can review the proposed project before you sign, helping you understand your borrowing position, required contribution and whether the finance structure aligns with lender requirements.
When you are building, your finance needs to keep pace with your project. Unlike a standard home loan, construction lending involves staged funding and project-specific lender requirements.
Funds are generally released as agreed construction milestones are completed.
Land value, construction costs, your contribution and completed valuation can all influence the finance structure.
Your building contract, builder, project timeframe, and supporting documentation may need to meet the lender's criteria.
Lenders may require progress claims, inspections or valuations before releasing funds at each stage.
At Loan Studio, we address these factors to help you understand the requirements, compare suitable lenders and keep your finance aligned with your project through to completion.
Discuss Your Construction Finance RequirementsWe provide construction finance assistance across a broad range of project types and borrower requirements.
Finance for constructing a new property on acquired or existing land, with funding structured around the building contract, valuation and construction schedule.
Lending structures that coordinate the land acquisition and subsequent construction facility, taking into account separate contracts, settlement requirements and staged construction payments.
Construction finance incorporating the existing property position, secured debt, land equity, demolition requirements, new construction costs and projected completed value.
Construction funding for substantial structural renovations, additions and extensions where staged lender drawdowns may be required.
Construction finance for eligible residential investment projects, assessed against project costs, borrower servicing, equity position and lender investment criteria.
Finance assessment for eligible owner-builder, dual-occupancy, multi-dwelling and other non-standard construction scenarios, subject to project characteristics, borrower eligibility and lender policy.
Construction loan types.
One dedicated broker.
Specialist Expertise, Personal Support, From Start to Finish.
We combine construction lending expertise with a hands-on broker approach, helping you structure the finance and navigate every stage of your project.
Our brokers support clients across key Australian markets, from the early planning stages through to approval, progress payments and completion.
Melbourne
Brisbane
Gold Coast
Sunshine Coast
Perth
A construction loan is designed to fund an eligible building project. Unlike a standard property loan where funds are typically advanced at settlement, construction funds are generally released progressively as agreed stages of the build are completed.
The key difference is how the funds are released. Construction loans typically involve staged drawdowns, progress claims and additional requirements around the building contract, valuation and builder. The exact process varies between lenders and projects.
There is no single deposit requirement for every construction loan. The amount you may need to contribute depends on factors such as the total project cost, land value, completed valuation, available equity, borrowing capacity and lender policy.
Potentially. If you already own land or another property with sufficient usable equity, that equity may form part of your contribution. We can assess your position and explain how a lender may treat the available equity.
Rather than releasing all construction funds upfront, lenders generally make payments as specified stages of construction are completed. Your builder submits a progress claim, and the lender may require supporting documentation, an inspection or valuation before releasing the next drawdown.
Interest is generally calculated on the amount of the construction facility that has been drawn. As additional progress payments are released, the outstanding loan balance and therefore the interest payable typically increases.
Requirements vary, but lenders may request a signed building contract, plans and specifications, permits or approvals, builder details, insurance and evidence of your financial position. Having the required documentation organised early can help support a more efficient assessment process.
Lenders may apply eligibility requirements to the builder undertaking the project. These can include licensing, registration, insurance and other lender-specific criteria. We can review relevant builder requirements when assessing suitable lenders.
A lower valuation can affect the amount a lender is prepared to advance and may increase the contribution required from you. If this occurs, we can review the funding position and assess whether alternative lending or structuring options may be available.
Variations, upgrades and unexpected works may fall outside the original approved facility. Depending on the circumstances, you may need to contribute additional funds or seek further lender approval. This is why allowing for potential additional costs before construction begins is important.
Potentially. House and land packages commonly involve separate land and construction components, which may have different settlement and funding requirements. We can assess both components and help structure the finance accordingly.
Knockdown-rebuild projects may be eligible for construction finance. The lender will typically consider factors such as the existing property value, current mortgage, available equity, demolition costs, building contract and expected completed value.
Yes, first home buyers may be eligible for construction finance, subject to their financial position, borrowing capacity, contribution and lender criteria. Depending on individual circumstances, government schemes or incentives may also be relevant.
Substantial renovations and structural extensions may be suitable for construction finance, particularly where funds need to be released progressively. The appropriate lending structure will depend on the scope, cost and nature of the works.
Approval timeframes vary between lenders and projects. The complexity of the build, valuation requirements, credit assessment and completeness of the supporting documentation can all influence how long the process takes.
We can review the circumstances behind a declined application and help identify whether lender policy, servicing, valuation, project structure or another factor contributed to the decision. Where appropriate, we can assess whether suitable alternatives may be available through our lender panel.
Once construction is completed and the final drawdown requirements are satisfied, the loan will generally transition to its ongoing repayment structure. At Loan Studio, we can review the facility with you at completion to ensure you understand the applicable repayments and loan features going forward.
Whether you are still assessing your options, preparing to sign a building contract or already progressing with construction, we can help you understand your funding position and the lending requirements ahead. Speak with a Loan Studio construction loan broker about your project, compare suitable options from our lender panel and establish a finance structure aligned with your circumstances.
