Funds released against progress
Stage-wise disbursement matches the money to the work, so you are not holding and paying for funds ahead of need.
Loan service
Home Construction Loan
Construction finance works differently from buying a finished home: funds are released against progress rather than in one payment.
Overview
About construction loan
A construction loan funds building a house on land you already own. It is assessed on a construction cost estimate and an approved building plan rather than on a purchase price.
The defining difference is disbursement. Rather than one payment, funds are released in stages as construction reaches agreed milestones, with the lender inspecting progress before each release. Many borrowers pay interest only on the amount drawn so far until the loan is fully disbursed.
That structure means approvals and documentation carry more weight here than in a straightforward purchase. Sanctioned plans, title to the land and a credible cost estimate all need to be in order before a lender will commit.
Key benefits
What you get from working with us on this
Interest often on the drawn amount only
Many lenders charge interest only on what has actually been disbursed during construction, which keeps the early burden lower.
Approvals checked before you commit
Plan sanction and land title are where construction cases most often stall. We check them at the outset rather than mid-build.
Cost estimate prepared to lender expectations
A credible, properly documented estimate is central to the assessment. We help you present one that lenders can work with.
Eligibility
What lenders generally look at
General guidance. Every lender applies its own criteria and may weigh these differently.
- Clear and marketable title to the plot being built on
- A building plan sanctioned by the relevant local authority
- A construction cost estimate the lender considers credible, usually from a qualified professional
- Demonstrable income sufficient to service the instalment
- A credit history the lender considers acceptable
- Land located within an area the lender is willing to fund
Documents
What you will typically be asked for
A typical checklist. Lenders may ask for more, or for less, depending on your profile.
Identity and address
Income
Land and approvals
Construction
How it works
A simple path from enquiry to lender decision
We help you understand and prepare the case. Verification, sanction terms and the final credit decision remain with the lender.
- 01Step 1
Share your requirement
Tell us what you are trying to do — buy, build, transfer or raise funds — along with your income type and rough timeline.
- 02Step 2
Consultation
We go through your profile, explain what lenders look for and set out the options realistically open to you.
- 03Step 3
Documentation
We tell you exactly which documents are needed and check the file is complete before anything is submitted.
- 04Step 4
Lender processing
Your application goes to the lender, who carries out their own verification, valuation and legal checks.
- 05Step 5
Lender decision
The lender decides the outcome and terms. We keep you updated and explain what any sanction actually commits you to.
Questions
Construction Loan questions we are asked
In tranches tied to construction milestones such as foundation, slab and finishing. The lender normally inspects progress before each release. The exact stages are set out in the sanction terms.
The sanctioned amount is based on the estimate submitted. An overrun is generally yours to fund, and any enhancement to the loan would be a fresh assessment rather than an automatic top-up. It is worth building some margin into the original estimate.
Many lenders charge interest only on the amount disbursed so far until the loan is fully drawn, with full instalments starting after that. Arrangements vary, so confirm the structure with the specific lender.
Some lenders offer combined plot-purchase and construction facilities, usually with a condition that construction begins within a defined period. It is a specific product and not every lender offers it.
Enquire
Ask us about construction loan
Send a short enquiry and we will get back to you to talk through your options. Nothing here commits you to anything.