Construction and renovation loans in Sydney Building or renovating, with the loan matched to each stage
Construction loans pay your builder in stages. We help you choose a lender that suits your build, budget for the costs the contract doesn't cover, and keep progress payments moving.
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Who this suits
- You're building a new home or doing a knockdown rebuild
- You've bought a house and land package
- You're adding a granny flat or building a dual occupancy
- You're planning a major renovation
How it works
- Check the numbersLand, the build contract, and the extras the contract doesn't cover, such as landscaping, driveways and fencing.
- Approval with your build documentsLenders usually need a fixed-price contract, plans and council approval.
- Progress paymentsThe lender pays the builder at each stage: slab, frame, lock-up, fit-out and completion. You usually pay interest only on what's been drawn.
- CompletionAfter the final payment, your loan moves to standard repayments.
Things worth knowing
Variations can break the budget
Lenders lend against the contract. Changes during the build may need to be paid from your own money.
The valuation is for the finished home
The lender values what the home will be worth when it's done. A lower valuation may mean a bigger deposit.
Granny flats and dual occupancy have their own rules
Lenders treat them differently for valuation and rental income, so lender choice matters.
Documents you'll usually need
- A fixed-price building contract
- Plans and specifications
- Council approval (DA or CDC)
- The builder's insurance certificate
- The land contract or title
- Your usual ID and income documents
We'll confirm exactly what your lender needs, so you don't gather anything twice.
Calculators for this
Questions
How do progress payments work?
The lender pays your builder directly at each stage, after checking the work has reached that stage. You'll sign off on each payment.
Do I pay full repayments during the build?
Usually not. Most construction loans charge interest only on the amount drawn so far until the build is complete.
Can I get a construction loan as an owner-builder?
It's harder. Fewer lenders accept owner-builder projects, and they often want a larger deposit. Talk to us early.
General information only. It doesn't consider your objectives, financial situation or needs. Lending criteria, fees and charges apply.
Ready when you are.
Book a 20-minute call. We'll listen first, explain your options in plain English, and tell you what we'd do next.