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Building a new home is one of the biggest financial commitments you will ever make, and having the right construction finance in place from the start can make a real difference. At Finance Hub, we work with clients across Regional Victoria to access Construction Loan options from banks and lenders across Australia, helping you find a loan structure that suits your build and your budget.
What Is a Construction Loan?
A construction loan is a type of building loan specifically designed for people who are constructing a new home rather than buying an existing one. Unlike a standard home loan where the full loan amount is released at settlement, a construction loan releases funds in stages as your build progresses. This is known as a progressive drawdown or progress payment schedule. Because you only charge interest on the amount drawn down at any given time, your repayments during the build period are typically lower than they would be on a fully drawn loan. This makes construction funding more manageable while your home is being built.
Finance Hub can help you understand how a construction draw schedule works and what to expect at each stage of your build, from laying the slab through to lock-up, fit-out, and practical completion.
Types of Construction Finance We Can Help With
There is no single type of construction loan that suits every situation. Finance Hub works with a wide range of clients across Regional Victoria who have different building goals and circumstances. Whether you are looking at a land and construction package, a house and land package, a custom home finance solution, or even owner builder finance, we can help you explore the options available through our panel of lenders.
We also assist clients who are considering a project home loan, off the plan finance, or spec home finance. If you are looking to renovate rather than build from scratch, we can discuss a house renovation loan or home improvement loan to help fund your plans. For clients who want to build something truly unique, custom design and custom home finance options may be available depending on your circumstances and the lender's requirements.
If you are purchasing land first and then building, a land and build loan may be the right structure for you. Finance Hub can help you understand how these loans work and what lenders typically look for when assessing a land and construction application.
How Progress Payments Work
One of the key features of a construction loan is the progress payment schedule. Rather than receiving the full loan amount upfront, your lender releases funds in instalments as each stage of construction is completed. Before each payment is made, the lender will typically arrange a progress inspection to confirm that the relevant stage has been finished to a satisfactory standard.
This staged release of funds means you are only paying interest on what has been drawn down, which is one of the reasons construction loans often include interest-only repayment options during the build period. Once construction is complete, the loan typically converts to a standard principal and interest loan, sometimes referred to as a construction to permanent loan.
It is important to note that most lenders require you to have a fixed price building contract in place with a registered builder before your construction loan application is approved. Fixed price contracts give lenders confidence that the total cost of the build is known and that there will not be unexpected cost blowouts. Some lenders may also consider a cost plus contract arrangement, though this can be assessed differently.
Lenders will also generally require that you commence building within a set period from the Disclosure Date, so it is worth being aware of any timeframes attached to your approval. Your builder will typically manage payments to sub-contractors such as plumbers and electricians through the progress payment process, and council plans and any relevant development application or council approval documentation will usually be required as part of your application.
Construction Loan Interest Rates
Construction loan interest rates can vary depending on the lender, the loan structure, and your individual financial situation. During the construction period, you will generally be on an interest-only arrangement, which means your repayments are based only on the amount that has been drawn down. Once the build is complete and the loan converts, your repayments will typically move to a principal and interest structure.
Some lenders also charge a Progressive Drawing Fee to cover the cost of administering each progress payment. Finance Hub will help you understand what fees and charges may apply so there are no surprises along the way.
Why Work With Finance Hub?
At Finance Hub, we understand that building a new home in Regional Victoria involves a lot of moving parts. From finding suitable land to finalising your building contract and submitting your construction loan application, there is a lot to think about. Our role as your mortgage broker is to help you access the right construction finance options and to explain how each loan structure works in plain language.
We work with a broad panel of banks and lenders across Australia, which means we can compare construction loan options and help you understand what is available based on your situation. Whether you are a first home buyer looking to build your dream home, an investor exploring progress payment finance, or someone planning a major renovation, Finance Hub is here to help you understand your options.
If you are thinking about building new home finance or want to explore what construction funding options might suit your plans, reach out to the team at Finance Hub today.
Step 1: Get in Touch
The first step is easy. Reach out to our team by phone, email, or through our website. Whether you have a clear goal in mind or you are just starting to explore your options, we are here to help. There are no silly questions and no pressure.
Step 2: Initial Consultation
We sit down with you, either in person at our Colac office or over the phone, to get a clear picture of your situation. We take the time to understand your goals, your financial position, and what you are hoping to achieve.
Step 3: Review Your Financial Position
Our team takes a close look at your income, expenses, assets, and liabilities. This helps us understand your borrowing capacity and identify the most suitable options for your needs.
Step 4: Research and Compare
With access to a wide panel of lenders, we do the legwork for you. We compare products, interest rates, fees, and features to find the solution that fits your goals and your budget.
Step 5: Present Your Options
We present our recommendations in plain language, no jargon. We walk you through the options so you can make an informed decision with confidence. You choose what works best for you.
Step 6: Application and Approval
Once you are happy to move forward, we prepare and lodge your application on your behalf. We manage the process with the lender, keep you updated every step of the way, and work to get your approval as smoothly and quickly as possible.
Step 7: Settlement and Beyond
When your loan settles, our job is not done. We stay in touch to make sure everything is working for you. As your circumstances change over time, we are here to review your finance and make sure it continues to meet your needs.
From the first conversation to long after settlement, Finance Hub is in your corner.
Talk to the team at Finance Hub about your construction loan options. We work with clients across Regional Victoria to help them access construction finance from banks and lenders across Australia.
Request a CallbackGetting started is straightforward. You can reach out to us by phone, email, or through our website to book an initial consultation. This first conversation is all about getting to know you, understanding your goals, and giving you a sense of how we can help. There is no pressure and no obligation. We will listen to your situation, answer any questions you have, and let you know what the next steps might look like. Whether you are just starting to think about buying a property or you are ready to move forward with an application, we are here to help you feel supported and informed every step of the way.
In most cases, our clients do not pay us directly for our mortgage broking services. We are typically paid a commission by the lender once your loan settles. We are required by law to be transparent about how we are paid, so we will always explain this to you upfront before you commit to anything. If there are any situations where a fee may apply, we will let you know clearly and in advance. Our priority is making sure you feel informed and comfortable with the process from the very beginning, with no surprises along the way.
The documents required will depend on your individual circumstances and the type of loan you are applying for. Generally speaking, most lenders will want to see proof of your identity, evidence of your income such as payslips or tax returns, details of your assets and liabilities, and information about the property or purchase you are looking to fund. If you are self-employed, you may need to provide additional documentation such as business financials. At Finance Hub, we will give you a clear checklist of everything you need to pull together before we get started, so there are no unnecessary delays in the process.
A mortgage broker acts as the go-between for you and a range of lenders. Instead of you having to approach each bank or lender on your own, a mortgage broker does the legwork for you. At Finance Hub, we look at your situation, understand what you are trying to achieve, and then search through a wide range of loan products to find options that suit your needs. We handle the paperwork, communicate with lenders on your behalf, and guide you through each step of the process. Our goal is to make the whole experience feel manageable and straightforward, no matter where you are in Regional Victoria.
The timeline for a loan application can vary depending on a number of factors, including the type of loan, the lender involved, and how quickly all the required documents can be gathered. In general, once we have everything we need from you, we work as efficiently as possible to move things forward. Some applications can be assessed within a few business days, while others may take a few weeks depending on the complexity of the situation. At Finance Hub, we keep you informed throughout the process so you always know where things stand. We believe clear communication is just as important as the outcome itself.
Having a less than perfect credit history does not automatically mean you are out of options. There are lenders who specialise in working with people who have experienced financial difficulties in the past, and Finance Hub has access to a range of these lenders. We will take the time to understand your situation honestly and openly, and explore what may be available to you based on your current circumstances. We will never make promises about outcomes, but we will always give you a clear and honest picture of where you stand and what your options might look like. Everyone deserves to have their situation heard.
Refinancing means replacing your existing loan with a new one, either with your current lender or a different one. People refinance for all sorts of reasons, such as wanting to consolidate debt, access equity in their property, or find a loan structure that better suits their current situation. Whether refinancing makes sense for you depends entirely on your personal circumstances, and it is not a decision to make lightly. At Finance Hub, we can sit down with you, review your current loan, and help you understand what your options are. We will always give you an honest assessment so you can make an informed decision that is right for you.
Absolutely. Finance Hub was built with Regional Victoria in mind. We understand that living outside of a major city can sometimes make it harder to access the same level of financial support that people in metropolitan areas take for granted. We work with clients across the region, whether you are in a large regional town or a smaller rural community. We can meet with you in person where possible, or connect with you over the phone or video call to make things as convenient as possible. Distance is not a barrier when it comes to getting the support you deserve.
Finance Hub can assist with a wide range of lending needs. Whether you are looking to purchase your first home, refinance an existing loan, invest in property, buy a vehicle, or fund equipment for your business, we have the knowledge and lender connections to help. We also work with clients who have more complex financial situations, such as self-employed individuals or those with variable income. No matter what your goal is, we take the time to understand your full picture before exploring what options may be available to you. We are proud to support clients right across Regional Victoria with their varied lending needs.
When you go directly to your bank, you are only seeing the products that one lender offers. Finance Hub works with a broad panel of lenders, which means we can look at a much wider range of options for you. We are not tied to any single institution, so our focus is entirely on finding something that suits your circumstances. We also take the time to understand your goals and explain things in plain language, so you always know what is happening and why. For people in Regional Victoria, having a local broker in your corner can make a real difference when it comes to getting the right support.