Construction Loans
Loans that release funds in stages as a build progresses, rather than as one lump sum.
Request a timeA 15-minute call with Marko, confirmed within one business day.
A construction loan is matched to your builder's payment schedule, so you're not paying interest on money you haven't drawn down yet. Interest is charged only on funds released at each stage.
Getting the staging and the lender's valuation process right up front avoids the common trap: a drawdown that lags the builder's invoice and holds up the job.
Most builds run five or six stages (slab, frame, lock-up, fit-out, completion), and each one needs a lender valuation before funds release. Marko lines this up with your builder's contract before you sign, so there's no gap between an invoice landing and the money being available to pay it.
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- Knockdown-rebuildBridging the demolition and build phases into one facility instead of two separate loans.
- Owner-builder (select lenders)A smaller panel will lend without a licensed builder. Marko knows which ones and what they need to see.
- Progress-payment structuringDrawdowns timed to your builder's contract stages, so approvals don't hold up the site.
How the money is released
- SlabThe first draw once the base is down.
- FrameReleased when the frame is up.
- Lock-upReleased at lock-up stage.
- FixingReleased as fixtures and fittings go in.
- CompletionThe final draw once the build is signed off.
Good fit if
- You've got a signed fixed-price building contract
- You're knocking down and rebuilding on your existing block
- You want funds released only as each stage is actually done
Worth knowing
- Each stage needs its own lender valuation before funds release
- Owner-builder loans have a smaller panel and stricter conditions
Questions about construction loans
How does a construction loan work?
Instead of paying the full amount upfront, the lender releases funds in stages (progress payments) as the build reaches milestones such as slab, frame, lock-up and completion. You generally pay interest only on the amount drawn so far.
Can I get a construction loan for a knockdown-rebuild?
Yes. Lenders look at the land value and the finished home's value; Marko works out how your existing loan and the build contract fit together, including where you'll live during the build.
What do I need before applying?
Usually a signed fixed-price building contract, approved plans, the builder's insurance, and the progress payment schedule. Having these ready avoids delays at approval.
Can owner-builders get finance?
Some lenders will lend to owner-builders, usually with tighter conditions. It's a narrower part of the market, so knowing which lenders do it matters.
General information only. Lender policies vary and change. Marko confirms what applies to you on the first call.
Still not sure? Request a time and Marko will look at your situation.