Build the home of your dreams with a construction loan


A construction loan is a good option for those planning to build or rebuild their own home. It differs to a regular home loan in that the loan funds are disbursed throughout the construction process, rather than in one lump sum. You will only be required to repay the interest on the amount that is drawn. When the property is complete, the loan will switch to a variable rate home loan.
Two men looking at construction docs for Lendfin construction loan
Investment loan property keys
Happy couple with keys to new home
Construction plans


Yes. Typically, you will need a 20% deposit of the total cost to qualify for a construction loan. It is often possible to obtain lower rates if you have a greater deposit.

A construction loan works based on a set schedule agreed between yourself, the lender and the builder. You obtain approval and sign documentation for a fixed loan amount, then the funds are disbursed at pre-determined intervals based on the building stage of the property. These disbursements are known as progress payments. Once the construction is complete, the loan will convert to a regular variable rate loan. Generally, you are only required to pay interest on the loan amount whilst construction is still being completed.

Aside from the usual documents such as payslips, proof of income, land title and identification, you will also need a construction schedule and details of the builder who is contracted to your project.

During construction, most lenders only require interest to be repaid on the loan as it is drawn down. Once complete, the loan usually converts to a standard variable rate principal and interest loan. Speak with a Lendfin specialist to discuss whether this type of loan will help you meet your financial goals.

Construction loans are generally only available to licensed builders. Most lenders consider unlicensed owner-builders as very high risk, so it can be difficult to obtain the funds required. Speak to a specialist at Lendfin and we can help you obtain a loan structure that works for your situation.

Flexible draw down to save you interest.

Deal direct with your lending specialist throughout the process.

Construction loan specialists with years of experience.