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Construction
Loans

Building your dream home starts with the right loan.

Building a home is one of the most exciting things you’ll ever do. It’s also one of the most complex. Between choosing a builder, finalising plans, navigating council approvals, and keeping track of costs – the last thing you need is a loan that adds to the stress. That’s where we come in.

What is a construction loan?

Construction loans work differently to regular home loans. Here’s what you need to know.

When you buy an existing home, you receive the full loan amount at settlement. A construction loan works differently. Funds are released in stages as your build progresses, known as progressive drawdowns or progress payments. You only pay interest on the money that’s been drawn down, not the full loan amount, which helps keep your repayments manageable while the build is underway. Once construction is complete and all funds are drawn, the loan typically converts to a standard principal and interest home loan.
It’s a more involved process than a regular home loan, but with the right broker in your corner, it’s very manageable.

How progress payments work

Loan structure matters more than most investors realise.

Your loan is released in stages that align with key milestones in the construction process. While the exact stages can vary by lender and builder, they typically follow this pattern:

Deposit / slab

The first drawdown is released when your builder requires the deposit and again once the slab or base is complete.

Frame

Funds are released when the frame of the home is up and inspected.

Lock Up

When the home is at lock up stage – roof on, windows and external doors in place.

Fixing

Internal fit-out underway, including plastering, internal doors, and cabinetry.

Completion / practical completion

Final drawdown released when the build is finished and ready for occupation.

Download our Property Investing guide here. We cover why people choose to invest in property, is investing in property the right choice for you and why using a mortgage broker is the smart choice.

Services

Personal.

First Home Buyer

Buying your first home doesn’t need to be daunting. We’ll guide you through the entire process, so that you can collect the keys with confidence.

Property Investment Lending

Finance the expansion of your property investment portfolio with the right loan and advice. It’s easier than you think.

Home Renovations Lending

Funding a home renovation can be daunting. Let us help you secure a loan that will help you fund the renovation of your dream home.

Construction Loans

Construction loans can help you transform your home, literally. Talk to one of our brokers and we’ll find a loan that’s right for you.

Vehicle Loans

In need of a vehicle upgrade? We’ll compare thousands of different loans so that you can drive off sooner than you think.

Refinance

Things change, so do loans. If you want to get more out of your home loan through refinancing, contact us today.

Booking Form

Book a personal consultation.

What you'll need

What you'll generally need to apply.

Construction loans require a bit more documentation than a standard home loan. Most lenders will want to see council-approved building plans, a signed fixed-price building contract with a licensed builder, a progressive payment schedule, evidence of builder’s insurance and home warranty insurance, standard income and financial documentation, and land details if you’re purchasing the land as part of the process. Not everything on this list applies to every situation, and if you’re an owner builder, the requirements are different again. We’ll walk you through exactly what’s needed for your specific build.

Types of construction loans

Different builds, different needs.

Building a new home from scratch, knocking down and rebuilding, or taking on a major renovation – each situation has its own requirements, and not every lender approaches them the same way.

Building new

The most common scenario. You’ve purchased land or have a block, you’ve chosen a builder, and you’re ready to go. A standard construction loan with progressive drawdowns is usually the right fit here.

Knock down and rebuild

You own an existing property and want to start fresh. There are specific considerations around demolition costs, council approvals, and how the existing property is treated as security.

Owner builder

If you’re project managing the build yourself rather than using a licensed builder, some lenders will consider owner builder loans but the requirements are more stringent and fewer lenders offer them. We know which ones do.

Renovation and extension

Major structural work can sometimes be financed through a construction loan rather than a standard home equity loan, depending on the scope. We’ll help you work out which product is right for your renovation.

Subdivision and development

Building multiple dwellings or subdividing a block brings in a different set of lender requirements and products. If this is your project, let’s have a conversation early.

Why use a broker?

Why use a broker for a construction loan?

Construction loans are more complex than standard home loans and the difference between lenders is more pronounced. Some lenders are much more flexible about timelines, builder requirements, and drawdown processes than others. Some are more competitive on rate. Some are better suited to owner builders or knock down rebuilds.

As an independent broker, we search across a wide panel of lenders to find the right fit for your build, not just whoever happens to be on the other end of a bank counter. We manage the paperwork, liaise with your builder and the lender at each drawdown stage, and keep things moving so your build doesn’t stall because of a finance delay.

We’ve been doing this since 2005. Construction loans are a regular part of what we do, and we know how to keep the process on track.

Our Mission

Working
with you.

Our experienced team of finance brokers have a wealth of knowledge to identify and implement the ideal financial solution for you. We prioritise working with you to achieve your business and personal financial goals for today and the future.

Meet the team
oracle
First home buyer building

Building your first home?

If this is your first home and you’re building rather than buying existing, there’s good news – you may be eligible for the SA First Home Owner Grant of up to $15,000 on a new build, as well as stamp duty concessions. The 5% Deposit Scheme also applies to new builds, meaning you could get into your first home with as little as a 5% deposit without paying Lenders Mortgage Insurance.We’ll make sure you’re not leaving any of these entitlements on the table. Take a look at our first home buyer page for more detail, or just give us a call.

How it works

It all starts with a conversation. Tell us about your build – what you’re planning, where you’re up to, and what your timeline looks like. We’ll work out your borrowing capacity, identify the right lenders for your situation, and get you pre-approval so you can move forward with your builder with confidence.

From there, we manage the loan through every drawdown stage. When your builder hits a milestone and requests the next progress payment, we make sure it’s handled smoothly and on time. We stay across the process from the first conversation to the day you get your keys.

Testimonials

What our
clients say.

We worked with Angelo from Oracle for the purchases of our businesses and investment properties. The level of personalized care, attention to detail, and professionalism demonstrated by Angelo and his team surpassed our expectations. As owners of small businesses, we appreciated the honesty, transparency, and especially the warm compassion throughout the whole mortgage process. We highly recommend Angelo and his team to all our professional colleagues, and thank him immensely for all his help so far.

Le Anh

From the time I first met with Jaidan who developed a plan for me and answered all my questions, who was there for me when I thought I was stuck and answered all my calls, either driving in his car on the way to an important meeting or after hours with a crying baby in his arms - thank you so much Jaidan - you are a gun! And Isabelle who cheerfully and effortlessly handled all my queries, handled the paper work and helped me RE concerns on the late contract and helped with the FHLDS paper work. Thank you so much!

Richard

I highly recommend Jaidan Ianni from Oracle. He worked very hard on my behalf to make my life long dream come true. Thanks to Jaidan my home is being built as I write. Jaidan diligently explained each process to me every step of the way. He was always available to speak to , and on the rare occasion he wasn't available he got back to me promptly. I really enjoyed working with Jaidan due to his friendly and caring nature. And I look forward to working with Jaidan in the future .

Sonia

Jaidan's integrity is what stands out the most. He is a listener, he asks the right questions and offers appropriate advice. His support and guidance through processing our financial needs, from beginning to end is the highest professional quality anyone could expect. Jaidan is well mannered, approachable, knowledgeable and willing to support our financial needs and I couldn't recommend his services more highly. I feel safe in the knowledge I am in good hands.

Jay

Jaidan was very professional from first communication right until the end. Jaidan always went over and above to ensure I was being looked after and knew what was going on. Jaidan is very knowledgeable and is able to cater to any circumstance. Being my first loan, I thought this experience would be very daunting and was unsure about the whole process prior to speaking with Jaidan. Jaidan made the whole experience a breeze, I would highly recommend Jaidan for any finance services.

Brodie

FAQs

How is a construction loan different from a regular home loan?

Instead of receiving the full loan amount upfront, a construction loan releases funds in stages as your build progresses. You only pay interest on what’s been drawn down during the build, which keeps repayments lower while construction is underway. Once complete, the loan converts to a standard principal and interest structure.

How long do I have to complete the construction?

Most lenders require the build to be completed within 12 to 24 months. Timelines can vary by lender, and extensions are sometimes possible if delays occur. We’ll set realistic expectations upfront and choose a lender whose timeline suits your build.

Do I need a fixed-price contract with my builder?

Most lenders require a signed fixed-price building contract with a licensed builder. This protects both you and the lender by setting clear expectations on cost. There are exceptions, particularly for owner builders, but this is the standard requirement.

Can I get a construction loan as an owner builder?

Yes, though fewer lenders offer this and the requirements are more stringent. You’ll typically need an owner builder permit, evidence of relevant experience or qualifications, and a larger deposit. We know which lenders are open to owner builder applications and can guide you through what’s required.

What if my build costs more than expected?

Cost overruns are one of the more stressful parts of any build. If your costs exceed the original loan amount, you’ll need to fund the difference yourself or explore whether additional borrowing is possible. This is one of the reasons a fixed-price contract is so important as it provides a level of protection against unexpected blowouts. We’ll talk you through how to protect yourself before you start.

What insurance do I need during the build?

Your builder should have builder’s all risk insurance and home warranty insurance in place before construction starts. Most lenders will require evidence of this before releasing funds. We’ll make sure all the insurance boxes are ticked as part of the process.

Can I use a construction loan to knock down and rebuild?

Yes. Knock down and rebuild is a common use of construction finance. There are some additional considerations around demolition costs and how the existing property is valued as security, but it’s a well-trodden path and we’ve helped plenty of clients through it.

Ready to start building?

Whether you’ve already chosen your builder or you’re still in the planning stage — the earlier you talk to us, the smoother the process. Let’s make sure the finance is sorted before the first brick goes down.

Let’s grab a coffee. 📞 08 8151 0400 ✉️ hello@oraclelend.com.au

Calculators

Construction Loan
Calculators.

Borrowing Power Calculator

Estimate how much you could borrow to build, based on your income, expenses and commitments.

Loan Repayment Calculator

Work out your estimated repayments and see what a construction loan could cost you each month.

Property Buying Cost Calculator

Add up the upfront costs involved in buying land and building your new home.