Planning a build, rebuild or major renovation in Melbourne? The finance needs to work with the project from the beginning, particularly once contracts, valuations and progress payments come into play.
At Loan Studio, we specialise in construction lending and support Melbourne borrowers from initial finance planning through to approval, progress payments and completion. We help you understand your borrowing position, compare suitable lenders and structure finance around the actual project rather than focusing on the interest rate alone.
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 site or land, construction budget, deposit or equity, income, existing debts and expected timeline.
We review suitable lenders from our panel and assess construction loan structures against your circumstances.
We help coordinate financial documents, the building contract and supporting information required by the selected lender.
Once work starts, we remain available to assist with builder payment requests, lender queries and the steps through to completion.
Construction lending requirements vary between banks and non-bank lenders. We compare suitable policies against your project, financial position and expected construction process.
We review the land, contract price, deposit or equity, additional costs and borrowing capacity before preparing the application.
Builders generally invoice at agreed construction milestones, including base, frame, lock-up, fixing and completion, although individual contracts can differ. We help you understand the lender’s requirements when a progress claim is submitted.
Our construction mortgage broker in Melbourne continues to support you after loan approval. We can assist with lender queries, documents, payment requests and the final drawdown.
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.
A construction loan should reflect what you are building, what you already own and when different costs need to be paid. We help Melbourne borrowers arrange finance for new builds, land and construction purchases, knockdown and rebuild projects, substantial renovations and extensions, and investment property construction.
We review these factors together so the finance suits the project from the outset.
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 RequirementsFinance structured around the site, building contract, construction budget and lender requirements, with consideration given to how the builder’s payment schedule is set out.
We can review the land settlement and construction components together, including the deposit, funding requirements and timing between purchase and building.
Existing debt, property value, available equity, demolition costs and the proposed build all need to be considered when arranging finance.
For substantial building works, our building loan broker in Melbourne can assess whether construction-style finance is appropriate and how contracted works and additional costs will be treated.
We consider the proposed build alongside your existing commitments, available funds, borrowing capacity and the overall investment lending structure.
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.
At Loan Studio, we support construction borrowers across metropolitan Melbourne and surrounding areas, from established suburbs to developing communities and outer growth corridors.
Melbourne
Brisbane
Gold Coast
Sunshine Coast
Perth
There is no single deposit requirement. The amount depends on the lender, land value, construction cost, available equity and your overall financial position.
Potentially yes. Equity in land or another property may contribute towards the project, subject to valuations, existing debt, borrowing capacity and lender policy.
The builder typically submits a claim when an agreed stage of work is complete. The lender then follows its approval and payment process. Because construction finance is drawn as the build progresses, interest is generally calculated on the amount already used rather than the entire construction facility from day one.
Potentially yes but it is subject to lending criteria. Existing debt, equity, demolition costs, the new building contract and borrowing capacity will need to be assessed.
Requirements vary between lenders. You will generally need financial information plus documents relating to the land, building contract, project costs and proposed works.
Every construction project has different costs, timelines and lending requirements. Getting the finance sorted early can give you a clearer path from planning and approval through to completion. If you’re preparing to build, rebuild or undertake a major renovation in Melbourne, speak with Loan Studio. We’ll review your project, explore suitable lending options and ensure you proceed in the right direction.
Commercial or home construction loans in Melbourne can involve more administration than a standard property loan. Contracts, valuations, equity, land settlement and variations can all affect the lending process.
At Loan Studio, we have supported more than 40,000 clients since 2011 and worked with a panel of 50+ lenders. We can assist with straightforward builds as well as projects involving existing equity, land purchases, substantial renovations or more complex funding arrangements.
We stay involved throughout the lending process, providing clear communication and practical guidance when questions or lender requirements arise.
