Construction Loans
Whether you are renovating or constructing your forever home, our tailored construction loans give you the financial structure to build with confidence.
Building your dream home or investment property can be exciting, but it comes with unique financial requirements. A construction loan is designed to provide the funds you need in stages as your property is built, helping you manage costs and cash flow throughout the construction process. Unlike standard home loans, repayments on a construction loan are usually interest-only during the building phase, and you only pay interest on the amount drawn down at each stage.
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Construction loans are designed to fund a new build or major renovation, releasing funds progressively as each stage of construction is completed. You only pay interest on the amount drawn down, keeping your repayments manageable while building.
Ideal For:
From single homes to investment builds, we’ll tailor the loan structure and lender to suit your timeline, budget, and goals.
Key Features of a Construction Loan
A construction loan provides funding in stages, known as progressive drawdowns, to align with your property’s building milestones. Unlike a traditional home loan where you receive the full loan amount upfront, construction loans release funds at key stages — typically slab, frame, lock-up, fit-out, and completion.
During construction, you usually make interest-only repayments on the portion of the loan that has been drawn down, keeping your repayments lower while your property is being built. Once the build is finished, the loan generally converts into a standard principal-and-interest home loan, meaning your repayments cover both interest and the loan amount.
This staged funding approach offers greater cash flow control and ensures you are only paying interest on money that’s actually been used for construction. Working with an experienced Sydney mortgage broker can help you understand each stage, manage lender requirements, and avoid common pitfalls like delays in progress payments.
Construction Loan Requirements
Lenders have specific requirements for construction loans to manage risk and ensure the project runs smoothly. To secure approval, you’ll typically need to provide:
Each lender may also have different policies regarding construction timelines, maximum loan amounts, and approved builder criteria. Having these documents ready upfront can significantly speed up the approval process. A mortgage broker specialising in construction loans can guide you through these requirements, help you prepare your application, and match you with lenders that suit your financial circumstances.
Construction loans are more complex than standard loans — they require extra documentation, council approvals, fixed-price contracts, and ongoing inspections. That’s why having the right broker matters. Whether you are a first‑time builder, upgrading your family home, or adding to your investment portfolio, our team is here to guide you through every stage of the process. Contact us today for a free consultation and let us help you secure the right construction loan to bring your vision to life.
Prince Capital Solutions Pty Ltd ABN: 24 147 935 055 is an Australian Credit License #426244
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
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