Construction finance needs to work from the contract stage through to the final progress payment.
Building a home or completing a major renovation involves different lending steps from buying an established property. The lender generally assesses the land, building contract, plans, specifications, valuation and your available contribution before approving a progressive-draw loan.
We help clients understand the likely borrowing position, lender requirements, cash contribution and progress-payment process before construction begins.
We can assist with
- New residential construction.
- House-and-land packages.
- Knockdown-rebuild projects.
- Major structural renovations and extensions.
- Construction of an investment property.
- Vacant land with a separate building contract.
How construction loans generally work
- The lender assesses the project and completes an ‘as if complete’ valuation.
- Your required cash contribution is usually used before or alongside lender funds, depending on the approval conditions.
- The builder issues progress claims at agreed construction stages.
- The lender may require inspections or supporting documents before each payment.
- Interest is generally charged on the amount drawn rather than the full approved limit during construction.
- After completion, the loan converts to the approved ongoing repayment arrangement.
Plan for more than the contract price
The total project budget may also include site costs, variations, demolition, landscaping, permits, professional fees, rent or holding costs and a contingency. Changes after approval can affect valuation, funding and the timing of progress payments.
How we help
- Review the land, build budget and likely end value.
- Compare construction lender policy and servicing requirements.
- Explain the deposit, cash contribution and progress-payment sequence.
- Coordinate required contracts, plans, permits, specifications and valuation documents.
- Assist with loan variations or funding changes where possible if the project evolves.
- Remain available through construction and the transition to the completed loan.
Book a no-obligation initial discussion with Jayden Chen to understand your current position and next steps. Call us on (03) 9835 8200.
