Planning to build a new home? A construction loan is a specialised type of finance designed to support you through the entire building process — from the first slab to the final handover.
At AJ Home Loans, we help clients navigate the often complex world of home construction financing, ensuring you get the right loan structure, the best terms, and expert guidance along the way.
Whether you’re a first-time builder, an owner-builder, or an experienced property investor — we’ll make the process smooth and stress-free.
Get Professional Loan Advice Today
What Is a Construction Loan?
A construction loan is a short-term, progressive loan that allows you to access funds in stages (known as progress payments) as your home is being built.
Unlike a standard home loan where you receive the full amount upfront, a building loan is paid to your builder at key construction milestones:
- Base/slab stage
- Frame stage
- Lock-up stage
- Fit-out stage
- Completion
You only pay interest on the amount drawn down at each stage, which can help with cash flow during the build.
Benefits of a Construction Loan
- Flexible funding to match the building process
- Interest-only repayments during construction
- Potential to access home equity if building on an existing property
- Ability to fund owner-builder projects (subject to lender criteria)
- Control over payments to builders and contractors
We’ll help you understand your options and structure your loan to suit your project.
Construction Finance Options We Can Help With
At AJ Home Loans, we help you explore a wide range of construction finance options, including:
- Construction loans for first home buyers
- Investment construction loans
- Owner-builder finance
- Fixed or variable rate options
- Flexible repayment options post-construction
We compare loans from a wide panel of trusted lenders to ensure you get the best deal for your project.
Who Can Apply for a Construction Loan?
To be eligible, most lenders require:
- A fixed price building contract with a licensed builder (or additional requirements for owner-builders)
- Detailed building plans and council approvals
- Evidence of stable income and good credit history
- Construction loan approval prior to build commencement
We’ll guide you through the full construction loan application process to ensure a smooth approval and settlement.
Our Construction Loan Process
1. Initial Consultation
We’ll discuss your building plans, timeline, and personal circumstances to understand your needs.
2. Compare Loan Options
We compare construction loan options from Australia’s leading banks and lenders to find the right fit for you.
3. Application Support
We help you prepare your documents and manage the entire loan application process.
4. Approval & Progress Payments
Once approved, we help coordinate progress payments with your builder — ensuring the process runs smoothly.
5. Post-Construction Transition
When your home is complete, we help transition your loan to a standard home loan with the most suitable terms.
FAQs About Construction Loans
How much deposit do I need for a construction loan?
Typically, lenders require a minimum deposit of 10–20%, but this can vary depending on your circumstances.
Can I access equity from my current home to fund a new build?
Yes — equity release is a common strategy. We can help you structure this effectively.
What’s the difference between a construction loan and a standard home loan?
A construction loan releases funds in stages during the build. A standard home loan provides the full loan amount upfront.
Are there extra fees involved in construction loans?
There may be valuation fees, progress payment fees, and lender fees. We’ll explain all costs clearly.
Can owner-builders get a construction loan?
Yes — but owner-builder finance comes with stricter criteria. We can help you understand your options.
Why Choose AJ Home Loans?
- Personalised guidance throughout the entire building loan process
- Extensive experience helping clients with construction finance
- Access to a wide range of building loan products
- Transparent advice — no hidden fees or surprises
- Trusted local mortgage broker with a family-first approach
Ready to Get Started?
If you’re planning to build — we’d love to help you structure the right construction loan for your project.
Contact AJ Home Loans today for expert advice and a no-obligation consultation.
- Phone: 0409 311 985
- Online Enquiry: Use the contact form located above or on our contact page.
AJ Home Loans — Helping local families and property investors build their dream homes with confidence.