Construction Loan Brokers Australia
WRA Mortgage Brokers helps borrowers across Australia structure construction loans for new builds, knockdown-rebuilds and renovations — with progress-draw lending that keeps your holding costs down, and lenders that accept land equity and self-employed income.
Frequently Asked Questions
How do construction home loans work?
A construction loan is approved on the final value of the completed property, but funds are drawn in stages as the build progresses — typically slab, frame, lock-up, fix and completion. You generally only pay interest on the amount drawn so far, keeping holding costs down during the build.
How do construction progress payments work?
Your builder invoices the lender at each completed stage. The lender (often via a valuer's inspection) confirms the stage is complete, then releases that tranche. WRA helps you and your builder understand the schedule and documentation so payments aren't delayed.
Can I get a construction loan for a knockdown-rebuild?
Yes. Knockdown-rebuild is a common construction scenario. The loan typically covers demolition and the new build, with progress draws as with any construction loan. Some lenders also allow you to stay in the existing home during early stages where practical.
Can I get a construction loan for a renovation or extension?
Yes. Renovations and extensions can be funded through a construction or refinance-with-construction loan, drawn in stages. For larger structural works, a progress-draw structure keeps your interest costs lower than drawing the full amount up front.
What deposit do I need for a construction loan?
Construction loans are generally available from around 5–10% deposit (plus costs), depending on the lender, the builder and whether you're an owner-occupier or investor. Genuine savings may be required by some lenders, while others accept equity in existing property.
Can I use land equity instead of cash for a construction deposit?
Often yes. If you already own land, many lenders will use the land value as your contribution, so you may not need additional cash for the build — the loan is structured against the combined land-plus-completed value.
Do I need a fixed-price building contract?
Yes. Lenders require a fixed-price (or fixed-sum) building contract with a registered builder, plus council-approved plans and specifications, before approving construction finance. This protects both you and the lender against cost overruns.
Can a self-employed borrower get a construction loan?
Yes. Self-employed borrowers can access construction finance; the income assessment follows self-employed policy (one-year financials, low-doc or full-doc depending on the lender). WRA structures both the income and the construction side together.
Information on this page is general in nature. Lender policies, eligibility criteria, rates and lending limits can change. WRA will confirm applicable lender requirements based on your individual circumstances before making any recommendation.
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WRA Mortgage Brokers — operated by We Are Available Pty Ltd. Based in Melbourne, servicing clients across Australia.