Construction Loans
Flexible construction loan solutions designed to support home builders and renovators across Australia.
At Stellar Finance Group, we simplify construction financing, helping you secure the right construction loan for your project, with expert advice at every step of the construction process.
Finance to Build Your Own Home
We’ve refined our process to make securing your home loan as seamless as possible. Maximum choice, minimum effort – on your part, that is.
Build Your Own
Dreaming of your dream home? Constructions loans are purpose-built (sorry, we had to).
Renovate Your Home
We can help you free up equity to finance those ambitious renovations.
Unlocking Flexibility With Construction Loans
Embarking on a home construction project can be daunting, requiring meticulous planning and financial management. To navigate this process smoothly, you need a financing solution that offers flexibility and tailored support.
Constructions loans, specifically designed for the unique needs of building or renovating your dream home, provide the perfect solution. Here’s why they’re the ideal choice:
Staged Funding
Unlike traditional home loans, construction loans provide funding in stages, aligned with the progress of your project. This ensures you only access funds as needed for each stage of construction.
Optimized Cash Flow
With staged funding, you’ll only pay interest on the amount you’ve accessed, not the entire loan amount. This optimizes your cash flow, especially if you’re renting while construction is underway.
Interest-Only Period
During the interest-only period, you’re not required to make principal repayments, easing financial pressure during the build phase.
Effective Budgeting
As your project progresses and you draw down more funds, be mindful that your interest payments will increase accordingly. Effective budgeting is crucial to manage this rise in interest costs as your project advances.
Construction loans
Great Access to a Range of Construction Loans
Construction loans differ from the usual home loan. For one, funds are released in instalments, in line with the progress of the build. They’re also structured in a way that reduces your repayment early on. We have insight into an impressive range of construction loan options that we’ll help you access to fund your dream home.
We can let you know if you qualify for any government grants and take you through the process of applying and securing the funding. Every little bit helps!
If you’re also interested in exploring car loan options, check out our Car Loans page for more details.
Building or renovating your own home is a huge undertaking! We’re always here to help decipher the bank and builder jargon, and keep you on top of what’s happening throughout the process.
You can also use our Budget Planner Calculator to assist with your financial planning.
How to Apply for a Construction Loan
1. Assess Your Financial Situation
Before applying, review your income, expenses, and financial commitments. Understanding your borrowing power helps determine the loan amount you’re eligible for. As construction loans are released in stages, knowing your budget and repayment capacity is key.
2. Finalise Your Building Contract
You’ll need a signed fixed-price building contract with a licensed builder. This outlines the construction cost and stages of work, critical for lender assessment and determining your progress payments during the construction phase.
3. Choose the Right Construction Loan Option
Not all lenders treat construction loans the same. Our brokers compare construction home loan options that suit your goals, whether you’re building your dream home, renovating, or starting an investment property project. We ensure the loan term, interest rate, and features align with your construction timeline and financial situation.
4. Apply for Pre-Approval
Construction loan pre-approval provides clarity on your borrowing limit and strengthens your position with builders and suppliers. It’s also essential for aligning timelines and budgeting for upfront costs like deposits and fees.
5. Submit Your Loan Application
With your plans, council approval, and building contract ready, your broker will prepare and lodge your construction loan application. We liaise with the lender to manage document requests and streamline the approval process.
6. Receive Progress Payments and Begin Building
Once approved, your lender will release funds in instalments, called progress payments, aligned with key construction stages (slab, frame, lock-up, etc.). Your broker will coordinate with your builder to ensure timely payment releases and minimal delays.
Who We Are
DR. LISA BRIDGETT
Since 2017, Stellar Finance Group has specialised in helping Australians access the right home loan and construction finance solutions. From first-time home builders to seasoned investors, we tailor every construction loan to fit your building timeline, budget, and future goals.
With 20+ years of combined experience, our mortgage brokers provide strategic advice and support through every phase of your construction project, from selecting a lender to settlement and permanent financing.
Smarter Construction Finance Solutions
Construction loans work differently from standard home loans. Funds are drawn down in stages, and interest is typically only charged on the amount drawn, making it a flexible option for new builds and major renovations.
At Stellar Finance Group, we guide you through the complexities of construction loans, including:
- Understanding construction loan rates and how they compare to standard home loans
- Managing progress payments and liaising with your builder
- Planning for the transition from construction phase to permanent financing
- Structuring repayments during the interest-only construction period
- Exploring options to reduce or avoid Lenders Mortgage Insurance (LMI)
Whether you’re building your first home, upgrading your existing property, or working on a residential construction project, our brokers tailor your loan to suit your goals and timeline.
How Construction Loans Work
Your Trusted Partner in Property and Finance
Construction loans are purpose-built for building or renovating homes. Unlike a regular home loan, your construction loan is drawn in instalments throughout the building process. Here’s how it typically works:
- Pre-Approval – Get conditional approval based on your income, building plans, and financial position.
- Land Purchase or Build Start – The first drawdown pays for your land (if not yet owned) or initial works.
- Progress Payments – Your lender releases funds in stages tied to specific milestones:
- Slab down
- Frame up
- Lock-up
- Fixing
- Completion
- Interest-Only Period – During construction, most lenders offer interest-only repayments based on the drawn-down loan balance.
- Loan Conversion – After completion, your loan converts to a standard principal-and-interest home loan for ongoing repayments.
Our expert team ensures every stage, from loan application to final settlement, is managed seamlessly to support your construction journey.
Why Choose a Construction Loan?
Construction loans are ideal when:
- You’re building a new home or custom design
- Renovating or extending your current property
- Managing cash flow with stage-based funding
- You want flexibility during the construction period
- You’re an investor managing multiple construction projects
With the right lender and support, construction loans can offer competitive rates, manageable repayments during the build, and long-term financial benefits.
Why Builders and Homeowners Choose Stellar Finance Group
We’re more than just mortgage brokers, we’re your financial partner from the ground up. At Stellar Finance Group, we help you:
- Compare construction loan rates from a network of lenders
- Understand the ins and outs of building contracts, council approvals, and loan documentation
- Secure loan pre-approval and manage lender requirements
- Coordinate with your builder during the construction phase
- Transition smoothly into a standard home loan post-completion
Whether you’re building a home for your family or starting your next investment, our construction loan specialists support you with expert advice, industry knowledge, and a focus on your long-term success.
Frequently Asked Questions
What is a construction loan?
A construction loan is a specialised home loan used to fund building or renovating a property. Instead of receiving the full loan upfront, the lender releases funds in progress payments aligned with stages of the build.
What documents do I need for a construction loan?
You’ll typically need:
- A signed building contract with a licensed builder
- Approved building plans
- Council permits
- Evidence of income and financial position
- Property insurance
Our mortgage broker will help you prepare and submit all necessary documentation.
Are construction loan rates higher than standard loans?
Construction loan rates may differ slightly but are often competitive. Rates can vary during the construction period and typically convert to your chosen loan product (fixed or variable) after completion.
How are progress payments made?
Your lender releases funds directly to your builder after completing each stage of construction. Your broker will assist in submitting progress claims and ensuring all conditions are met for smooth payments.
Can I use a construction loan for investment property?
Yes. Many investors use construction loans to fund new builds or dual-occupancy developments. We can help structure an investment property loan tailored to your goals and rental income expectations.
Can owner-builders apply for construction loans?
Owner builder construction loans are available but more limited. These often require larger deposits, detailed construction plans, and a strong financial position. Speak to our brokers to explore your options.
Hear From Our Clients
Lisa has a fantastic way of tuning into needs and ensuring we have confidence in our important decisions, through being well informed and not rushed. Lisa really made us feel assured and helped to break down any knowledge barriers, making us feel in control of our decisions. Thank you Lisa for your ongoing support and helping to build a positive future for our family!
Wayne Jones
From the moment you first meet, Lisa will be here to inform you, guide you and along with you, make your financial dreams come true. Sam Asadollahi recent experienced this when he asked Lisa to help him with purchasing his first property.
Sam Asadollahi
Got a dream? Lisa and her team can help you make it happen. I can’t think of a better person to have on my team to achieve my goals. Her hard work and determination bring results and she always has plan B and C (at least!) to make sure she can make things happen for you. Her team are excellent, keeping you well informed in the progress of negotiations and very responsive. I can’t recommend Lisa and her team enough!
Jennifer Hsu
Lisa was awesome in the way she carried out her services. She was fully engaged from the very first meeting in understanding our needs to then take us through options in the market and eventually help us choose the right product. The whole process was well defined and managed by Lisa and her team all the way till we settled. If you are on the lookout for a professional who knows the mortgage industry well, spends time to understand your needs and maintains a proactive communication at every step of the process, then Lisa should be your choice for a broker. I highly recommend the services of Lisa Bridgett and thank her for the efforts.
Babu Narayanan
It was an absolute pleasure working with Lisa on our loan financing. Lisa is extremely professional, dedicated and knowledgeable. We were very impressed with how responsive Lisa always was (and still is) to all our questions and we valued the fact that we could communicate with her outside of the normal working hours. We would recommend Lisa highly to anyone in need of mortgage financing.
Magda Louw
Lisa Bridgett is all about making her clients’ life easier! From the moment you first meet, Lisa is there to inform you, guide you and along with you, to make your financial dreams come true. Hear what her client Renee Vella has to say.
Renee Vella
Speak to Us
Experienced Construction Loan Broker in Australia
Contact Stellar Finance Group today, your trusted partner for tailored construction loan solutions. Whether you’re building your dream home or an investment property, we’re here to guide you every step of the way.
