Build your home with the finance properly planned.
Construction lending works differently from a standard home loan. I help you understand the numbers, lender requirements and progress payments before the build begins, then stay with you through to completion.
A construction loan is more than a borrowing limit.
The loan needs to work with your land, building contract, expected costs, valuation and timing. A lender may approve the overall facility, then release money in stages as the build progresses.
That means decisions made before you sign can affect your cash contribution, repayments and ability to manage changes during construction. My role is to help you see the full picture early and explain what happens next in plain English.
The construction loan journey, made clear
Five clear stages show when the land loan is established, how construction funds are released and what to review once the home is complete.
Land
The land settles
The land portion of your loan is drawn and the mortgage over the land is established.
Ready
Construction begins
Once the lender’s requirements are met, construction funding is ready for the builder’s first eligible claim.
Build
Progress payments
At each agreed stage, the builder invoices and the lender releases the approved payment after its checks.
Complete
Final draw and handover
The last approved payment is released, the loan becomes fully drawn and the completed home is handed over.
Review
Review the finished loan
With construction complete and the loan fully drawn, it is a good time to review your rate, repayments, fees, features and loan structure.
Six practical construction tips
A build has many moving parts. These simple habits can help you protect your budget, keep decisions clear and stay on top of the finance process.
Tip 01
Plan the whole budget
Look beyond the building contract. Include likely site costs, external works, finishing items and a sensible contingency for the unexpected.
Tip 02
Understand before signing
Know what is included, excluded and allowed for in the contract. Consider appropriate legal and building advice before making a binding commitment.
Tip 03
Know the payment stages
Understand when the builder expects each progress payment and what the lender may need before releasing construction funds.
Tip 04
Put variations in writing
Record agreed changes, prices and timing. A clear written trail makes it easier to track the effect of variations on your budget and build.
Tip 05
Keep records organised
Keep contracts, invoices, approvals, inspection information and important emails together so documents are easy to find when requested.
Tip 06
Check before major changes
Before taking new credit or making a major employment or financial change, speak with your broker about whether it could affect the lending position.
Allow for the costs people forget
Watch the gap between the contract price and the amount needed to make the home complete. Site works, variations, landscaping, window coverings, flooring, driveways and delays can affect your budget.
A valuation may also differ from your total project cost. Planning for these possibilities early is far easier than trying to solve them once construction is underway.
Practical guidance, not just an application.
I am Liran Morris, an award-winning Mortgage Matrix broker with a background in real estate and property development. I understand that building a home involves a builder, contracts, deadlines, valuations and many moving parts, not simply a loan.
You deserve to know what the finance requires before the build starts, not after a problem appears.
I help construction borrowers across Australia, with a Perth base and phone or video appointments available. You will have someone to explain the process, follow up the details and stay involved through the build.
Clear answers before you build
Can a construction loan cover the land and the build?
It may be possible to finance the land and construction as part of the overall lending structure. The timing, contracts, deposit and lender requirements determine how the transaction needs to be arranged.
Do I need a fixed-price building contract?
Many lenders prefer a clear contract price and detailed specifications, but requirements are not identical across all lenders or projects. It is important to review the proposed contract and finance position before relying on a particular structure.
How do progress payments work?
The builder issues invoices at agreed stages. The lender reviews each request and may require evidence, an inspection or confirmation from you before releasing funds. The process and stage names can vary.
What happens to repayments while the home is being built?
Interest is commonly charged on the amount already drawn during construction, so payments can increase as the build progresses. Your exact repayment arrangement depends on the loan and lender.
Can first home buyer support be used when building?
Some eligible borrowers may be able to use government schemes, grants or concessions when building. Eligibility, property limits and timing rules change, so current requirements should be checked for your circumstances before you commit.
Should I get finance advice before signing a building contract?
Yes, understanding your borrowing position and likely lender requirements before signing can reduce the risk of committing to a project that does not fit your finance. Legal advice should also be obtained before entering a binding contract.
Let’s work out what is possible before you commit.
Book a free appointment with Liran Morris to discuss your land, build budget, deposit or equity and the next steps for your construction loan.