Construction Loans

Building a new home is an exciting journey, but construction finance can feel different from a standard home loan. We help you understand how construction loans work, including progress payments, loan requirements and what to expect throughout the building process.

Whether you are building your first home, upgrading to a new family home or creating a home that better suits your future needs, we can help you explore suitable construction loan options and guide you from planning through to completion.

Discuss My Construction Loan

Understand the Construction Loan Process

Construction loans work differently from a standard home loan. We explain how progress payments, valuations, loan drawdowns and the building process work, so you know what to expect from start to finish.

Compare Suitable Construction Loan Options

With access to a panel of over 40 lenders, we compare construction loan options based on your builder, contract, financial situation and future goals to help you find a suitable solution.

Support You Throughout Your Build

From pre-approval and loan application through to progress payments and final completion, we work alongside you to help make the construction finance process as smooth and stress-free as possible.

Your Construction Loan Journey

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1. Planning Your Build

Before construction begins, we'll discuss your plans, review your borrowing capacity and help you understand your budget. We work with you to prepare your application and explain how construction finance differs from a standard home loan.

2. Loan Approval and Progress Payments

Once your loan is approved and construction begins, your lender releases funds in stages as your builder completes each milestone. We help you understand the progress payment process and keep you informed throughout your build.

3. Completion and Moving In

When construction is complete, the final payment is made to your builder and your loan transitions to a standard home loan. We'll continue to support you through settlement so you can focus on enjoying your new home.

What Are Progress Payments?

Unlike a standard home loan where all funds are provided at settlement, construction loans are generally released in stages as your home is built. These are known as progress payments and are usually made after key milestones such as the slab, frame, lock-up, fixing and completion stages.

Because interest is generally charged only on the amount that has been drawn, repayments during construction may be lower than they will be once the home is complete.

We will explain each stage of the process and work with you, your lender and your builder to help ensure everything progresses as smoothly as possible.

Frequently Asked Questions

Please reach us at admin@angelsfinancial.com.au if you cannot find an answer to your question.

How do construction loans work?

Construction loans are different from a standard home loan because the funds are generally released in stages as your home is built. These are known as progress payments and are made after your builder completes key stages of construction. Once your home is finished, your construction loan usually transitions to a standard home loan.

What are progress payments?

Progress payments are instalments paid to your builder at different stages of the build, such as the slab, frame, lock-up, fixing and completion stages. Before each payment is released, the lender will generally confirm that the required stage has been completed.

Do I pay interest on the full loan straight away?

Generally, no. During construction, interest is usually charged only on the amount that has been drawn down, not on the total approved loan amount. As more progress payments are made, your repayments may gradually increase until construction is complete.

What documents do I need for a construction loan?

Most lenders will require documents such as your signed building contract, council-approved plans (where applicable), building specifications, progress payment schedule, proof of income and identification. We will provide you with a personalised checklist based on your circumstances.

Can I build with my own builder?

Yes. Most lenders allow you to choose your own licensed builder, provided they meet the lender's requirements. We can discuss any lender-specific requirements before you sign your building contract.

What happens once my home is complete?

When construction is finished and the final progress payment has been made, your loan generally converts to a standard home loan. We can also review your loan at this stage to ensure it continues to meet your needs and discuss whether there are opportunities to improve your loan structure in the future.

Every build is different. If you have questions about construction finance, we'd be happy to discuss your plans and explain how the process works.

Mas89 Services Pty Ltd | Angels Financial (ABN / Credit Representative Number 480365) has access to a panel of lenders through National Mortgage Brokers Pty Ltd., (ACN 093 874 376 / Australian Credit Licence 391209), which is a fully-owned subsidiary of Liberty Financial Pty Ltd (ACN 077 248 983 / Australian Credit Licence 286596). Angels Financial has access to products including those from Liberty Financial.

Disclaimer: This website is designed to provide you with factual information only. This information contained within does not take into account your needs, objectives or financial situation. To understand whether a credit product is right for you speak to one of our licensed Finance Brokers. Terms, conditions, fees, charges, and minimum loan amounts apply. Credit is subject to approval by the credit provider. Rates of interest are determined by the credit provider and are based upon your unique credit profile.

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Angels Financial, understands that the details you provide us with are not only private and personal but that how we collect, use, hold, exchange and protect your information is important to you. It's imperative that you feel secure whenever you deal with us. It's also important that you understand how we protect your privacy, as well as how, when and where we may use your personal information. This Privacy Policy is our commitment to you on what our policies towards your privacy are. You can be confident in the fact that we abide by and are bound by the Privacy Act and the Australian Privacy Principles (APPs) for the protection of personal information.

What information do we collect?

We collect personal information. Personal information means any information or opinion about you as an identified individual, or an individual who is reasonably identifiable, whether the information or opinion is true or not, and whether the information or opinion is recorded in a material form or not. For example identity and contact details, marital status and financial information.

We may also collect sensitive information for specific purposes. For example, information about your health to enable the credit provider to assess an application you make for mortgage protection insurance and calculate any premiums. If we need this type of information, we will ask for your consent.

How do we collect your personal information?

We will always aim to collect your personal information directly from you. If for some good reason, we are unable to do so, we may involve another organisation. For example, we may need to request a credit report from a credit reporting body when you apply for a credit facility. Before doing so or prior to collecting the information we need, we will inform you of the type of organisations we intend to disclose your personal information to. We may also collect your personal information through third parties who undertake the collection on our behalf.