Construction Loans

Looking to build your dream home? We can help make your blueprint a reality! We’ll find the most suitable construction home loan with competitive rates and ensure a smooth approval process.
clients helped get financing
0 +
worth of loans transacted.
$ 0 M
lenders on our panel
0 +

Getting a construction home loan in Sydney

A construction home loan is a type of financing specifically designed for individuals like you or entities who are building or undertaking major renovations on a property. 


Unlike a regular home loan where the full amount is disbursed at once, a construction loan is typically drawn down in stages. This means you only pay interest on the portion of the loan you’ve used.


In Sydney, lenders typically require a fixed-price contract from a licensed builder and will evaluate the builder’s qualifications, building plans, and property valuation to determine the loan amount. As construction advances, funds are released in “progressive drawdowns”, with lenders verifying each stage’s completion. 


Once construction is finalized, the loan usually shifts to a standard home loan format, leading to regular principal and interest repayments. 


To make sure that you’ll get the most suitable loan for your needs, speak with our expert brokers!

How can you benefit from construction home loans?

Staged Funding

With construction loans, you borrow money in parts as the building progresses. This means you're only borrowing when you need it, potentially saving you money.

Interest-Only Payments

While building, many lenders let you pay just the interest, meaning lower payments than if you were repaying the borrowed amount too.


Construction loans are tailored for building, offering leeway for any changes or unexpected delays during construction.

How much will it cost you build a home?

Your owner-occupied home loan repayments

Property type:
Repayment type:

Your estimated repayments:

Principal and interest period
Variable interest rate:
Comparison rate:
Total interest payable:
6.14% p.a.
6.14% p.a.

Things to consider before getting a construction home loan

Certainly, as with any loan, construction home loans come with their own set of risks for borrowers. Here are some of the primary concerns:

Cost Overruns

Building projects can sometimes go over budget due to unforeseen complications, material cost increases, or changes to the original plan. If the loan amount doesn’t cover these extra costs, you’ll need to find additional funds elsewhere.

Construction Delays

Delays can arise from bad weather, contractor disputes, or permit issues. A prolonged construction period could increase the total interest you’ll pay during the interest-only phase or even lead to higher costs.

Change in Financial Circumstances

If your financial situation changes during construction (e.g., job loss), you might find it challenging to manage the loan, especially when it converts to principal and interest repayments.

Interest Rate Changes

Since construction can take a significant amount of time, there’s a possibility that interest rates might rise during the build. If you haven’t fixed your rate, higher rates can increase your repayment amounts.

Lower Final Valuation

At the end of construction, the property might be valued lower than expected. This could impact your loan-to-value ratio (LVR) and might require you to pay lender’s mortgage insurance or find additional funds.

End of Interest-Only Period

Once construction is completed, the loan often switches from interest-only payments to principal and interest. This transition can lead to a significant jump in monthly repayments, which you need to be prepared for.

With 50+ lenders at your fingertips, you have the power of choice

When you set out on your own seeking a loan, banks have the power to reject you. But with us on your side, it’s the other way around. We choose the most suitable loan for your unique needs.

You’re only 3 steps away from your financial goal

Step 1

Reach out to us and let’s discuss your situation and what kind of loan you need.

Step 2

Sit back and relax while we search our network to find the perfect loan for you.

Step 3

Choose the best loan that suits your needs. Then we’ll submit a foolproof loan application to secure your financing.

Why Lend & Loan

10 years of experience

We’ve been doing this for a decade, so we’ve built strong connections with lenders and we know their lending policies inside out. This helps us find the right loans that suit your needs.

One-touch approvals

We know exactly what banks and other lenders require from the get-go. We’re experts at putting together foolproof loan applications that lenders approve without further questions. 


We’re not like your typical 9-5 mortgage brokers. You can reach us when you need us, and we’ll get back to you within four hours.

Efficient processes

We understand that you’re busy, so we keep things simple. We try to avoid in-person meetings to save you time and make the loan process easy and stress-free.

Don’t take our word for it, take theirs.

We’ve helped hundreds of Australians
get approved for a loan and achieve their financial goals. Hear it from our
happy clients.

Looking to make a purchase or investment?

Find out how much you can borrow.

Frequently Asked Questions

Construction loans are drawn down in stages as construction milestones are achieved, such as slab completion, roof installation, and interior finishing. After each stage, the lender releases the funds required for the next phase.

Yes, but most lenders require the builder to be licensed and have a fixed-price building contract. It's essential to ensure your builder meets the lender's criteria to avoid complications.

Typically, the interest-only period lasts for the duration of the construction, which can be 12 months or longer, depending on the project. After completion, the loan usually reverts to a principal and interest repayment structure.

If costs exceed the approved amount, you'll be responsible for covering the additional expenses, either through personal savings or by renegotiating your loan, which may not always be possible.

While it's possible to make changes, it might affect the loan agreement and lead to additional costs. It's essential to communicate any changes to both the lender and the builder.

Construction delays can increase the overall cost and extend the interest-only payment period. It's crucial to have a contingency plan and communicate with your lender about any significant delays.

Once construction is completed, the loan typically converts to a standard home loan, and you'll start making regular principal and interest repayments.