Construction Loans
Building a home is one of the most exciting things you can do. It is also one of the most financially complex, and construction lending works very differently to a standard home loan.
Get the structure right before you break ground and the finance side of your build runs smoothly from first draw down to final payment. We manage every part of that process so your builder gets paid on time and your project does not stall waiting on a lender.
The Right Construction Loan Structure Keeps Your Build Moving
Construction loans release funds progressively as your build advances. If the loan is not structured correctly from the beginning, draw downs get delayed, your builder's cash flow is affected and your project timeline starts to slip. The lender also has specific requirements around fixed price contracts, builder licences and council approvals that need to be in order before a single dollar is released.
We know what lenders need, we get it in order before submission and we stay across the draw down process so nothing holds up your build at a critical stage.
We help owner builders, custom home builders and renovators with every part of the construction lending process, including:
Assessing your borrowing capacity for a construction loan
Comparing construction loan options across our full lender panel
Explaining the progressive draw down process and what triggers each payment
Reviewing your fixed price building contract and flagging anything lenders are likely to question
Managing your application through to approval and first draw down
Liaising with your builder and the lender throughout the construction period
Converting your construction loan to a standard home loan at completion
Construction Loan Broker Services
Construction Loan Stages Explained
Unlike a standard home loan where funds are released in full at settlement, construction loans release funds progressively as each stage of the build is completed. Typical stages include:
Slab or base: Foundations laid and base complete
Frame: Wall and roof frames erected
Lock up: External walls, windows and doors in place
Fixing: Internal fit-out including plumbing, electrical and plastering
Practical completion: Build complete and ready for occupancy
At each stage your builder submits a progress claim, the lender arranges a valuation inspection and funds are released. Interest is charged only on the amount drawn down, not the full loan amount, which keeps your repayments lower during the build.
Construction Loans for Owner Builders
If you are acting as your own builder rather than engaging a licensed builder, your lending options are more limited. Most lenders require a licensed builder to be involved and those that do lend to owner builders typically cap the loan at a lower percentage of the land and construction value.
We know which lenders are genuinely active in the owner builder space and what you need to have in place to make an application viable. If you are considering this path, talk to us before you commit to anything.
Land and Construction Loans
If you are purchasing land and building at the same time, a land and construction loan combines both into a single facility. The land purchase settles first and the construction component draws down progressively once the build begins. This avoids the cost and complexity of managing two separate loans.
We structure land and construction loans regularly and can advise on timing, deposit requirements and what to have ready at each stage of the process.
Renovation Loans and Knockdown Rebuilds
Not all construction lending involves a new block of land. If you are renovating an existing property or knocking it down and rebuilding, the lending works differently again depending on the scale of the work and whether you remain in the property during construction.
For major renovations, a construction loan is often the most appropriate structure. For smaller works, refinancing to access equity or adding a separate loan facility may be more suitable. We will assess your specific project and recommend the right approach.
Why Builders and Renovators Choose Shorebreak Finance
We are a locally owned mortgage broker based in Berry on the South Coast. We understand the regional construction market, the timelines involved and the practical realities of building here.
Construction projects are stressful enough without financing complications. Our job is to make sure the money side of your build runs smoothly from approval through to the final draw down, so one less thing keeps you up at night. Many of our construction clients come back when they are ready to build again or refinance at completion. We build those relationships for the long term.
Relationships that speak for themselves
“Ron demonstrated an outstanding level of knowledge, developing a strategic approach tailored to our circumstances. His ability to clearly explain complex finance matters gave us complete confidence throughout the process. The entire experience was seamless and stress-free. The Shorebreak Finance team consistently exceeded expectations and I would not hesitate to recommend them to anyone.”
— Mikayla H.
“I would like to commend Chris on all his hard work and effort making this loan possible for me. He went above and beyond to help in every way he could and I am very grateful. He kept me informed every step of the way and made the process as smooth as possible. 5 stars would not be enough for the magnificent job he did. I would recommend Chris 100% anytime.”
— Ivanka P.
“Chris didn't just find us a loan. He gave us honest and strategic advice to ensure we were making the best decision for our future. He was with us every step of the way, always available to answer our questions and guide us through each stage with patience and genuine care. We recommend Chris and Shorebreak Finance with 100% confidence.”
— Juan P.
Planning a Build? Let's Talk It Through Over Coffee
Bring your plans, your builder quotes or just an idea you are working through. We will tell you what is possible, what lenders will need and how to get the finance in place before you need it.
