Construction loans

Construction loans are designed to meet the needs of a borrower who is building a home or undertaking major renovations to an established property. The loan money is released progressively as the builder completes agreed stages under the building contract. Typically these stages are.

Base Stage

Completion of foundations

Frame Stage

Completion of framing and roofing

Lock - up Stage

Completion of external walls, floors, doors & windows

Fixing Stage

Internal walls, ceiling, cupboards, benches


Appliances, painting, & occupancy permit

The major benefit is that interest is charged only on the amount outstanding not the total loan approved. The disadvantage is that some lenders will charge fees to inspect the property at each payment stage resulting in higher initial costs.

The documentation required for a construction loan is considerably more than an established property - fixed price building contract with a licensed builder, building plans, specifications and permits.

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For Expert Home Loan Advice

We are open 6 days a week, with appointments available in the evening and on weekends

To contact us at any time please call our office number,  or complete the details below and click "send". We will respond to you as soon as we can.

Home Loan Advisory Service :

Ground Floor, G0.5, 448 St Kilda Road MELBOURNE VIC 3004

Telephone: (03) 9866 4433

Fax: (03) 9866 4944

E-Mail: ua.moc.ecivdanaolemoh@ofni