A room refresh, structural renovation and new build can need different funding arrangements. Start with your project scope, costs and timing, then discuss whether there is a suitable lending path.
Bring the plans and the practical questions together.
/01Project scope
/02Contract and costs
/03Funding stages
What are you planning?
The work shapes the funding discussion.
Explain what is being changed and who will carry out the work. Avoid assuming that one type of loan covers every project.
/01
I want to improve my current home.
Define the renovation
Separate cosmetic work from structural changes. Have quotes and a scope ready before considering savings, an existing loan feature or additional borrowing.
/02
I am planning a major renovation.
Account for the whole project
Include approvals, professional fees, temporary accommodation and work outside the builder’s quote. A lender may require a construction arrangement rather than a standard loan increase.
/03
I want to build a home.
Connect the land and build
Consider the land purchase, building contract and when funds are needed for each. Funding depends on the project, builder, property and lender requirements.
Before you sign
Check what the quote leaves out.
A project budget needs to cover more than the headline contract price. Make the assumptions and gaps visible early.
Ask what is included, what is an allowance and what you must arrange separately. Consider site works, utility connections, flooring, landscaping and professional fees as relevant.
02Variations and contingency
Allow for unexpected costs and understand how contract changes will be approved and paid. A lender does not automatically fund an increase in your building costs.
03Cash needed before drawdowns
Check when deposits, fees and your own contribution are payable. A builder’s invoice date does not guarantee that loan funds will be available that day.
04Repayments during and after the work
Allow for current housing costs during construction and check repayments when the completed loan is fully drawn. Interest-only arrangements, where offered, do not reduce principal during that period.
Have your building contract, permits, insurance and consumer protections checked by the relevant qualified professionals and state building authority. Confirm finance conditions before committing to the work.
The next steps
Understand a typical staged funding arrangement.
Some construction loans release funds as work progresses. This is an explanation of the mechanics, not an offer or confirmation that your project qualifies.
01
Plans and assessment
The lender considers your finances and the proposed project. It may require plans, a building contract, approvals, insurance and a valuation.
02
Your contribution
Confirm how much you must contribute, when it must be paid and what evidence the lender requires before releasing loan funds.
03
Progress payments
Payments may follow stages such as base, frame, lock-up and fit-out. The actual stages, inspections and release conditions come from your contract and lender.
04
Completion and repayments
Check the documents and inspections needed for final payment, and the repayment arrangements that apply once the building work is complete.
Lender requirements, loan terms and stage names vary. This page does not confirm availability for owner-builder, development, cost-plus or other specialist projects; discuss your exact project first.
A little more clarity
Before you take the next step.
A few useful answers. For the details that are specific to you, talk with our team.
General educational information only, not a construction-finance offer, building, legal or personal financial advice. Project suitability and loan availability must be confirmed. Any credit is subject to lender eligibility, full assessment, valuation, terms, conditions and fees.
