Construction Loan Broker: finance your new build from slab to keys.

Working with a construction loan broker means you have someone who knows which lenders suit your type of build, how they'll value it, and what each stage needs before the money flows. A good mortgage broker in Albury & Wodonga will look at your land, your contract and your budget, then set up the loan so it keeps pace with your builder. If you're extending or renovating rather than building new, a renovation loan broker can help you compare those options.

Want the full background first? Our guide to how construction loans work explains the basics in detail. This page focuses on how we set up and manage your construction finance.

How Construction Finance Works

A construction loan follows the build rather than a settlement date. Four things set it apart from a standard home loan:

Money Released in Stages

The lender pays your builder in instalments as each stage is finished, rather than all at once. You approve each payment, and the lender usually checks the work first.

Interest on What's Drawn

You only pay interest on the amount drawn so far, so repayments start small and grow as the home goes up. Most lenders offer interest-only repayments during construction.

Valued as if Complete

The lender values your land plus the home you're building, based on your plans and contract. That on-completion value sets how much you can borrow.

A Standard Loan at the End

Once the home is finished, the loan usually switches to principal and interest repayments, just like any other home loan.

Progress Payment Stages

Your building contract sets out when your builder can be paid, and the lender releases funds to match. As a general guide for a new home built under a standard contract:

*Victorian figures are the legal maximums for a contract covering all stages, as at November 2026, and these rules are set to change from 31 March 2027. In NSW, there are no set stage percentages, but the deposit is capped at 10%, and the builder must hold home building compensation cover before taking it on work over $20,000. In Victoria, the builder must give you their domestic building insurance details before taking a deposit.

From Deposit to Keys: The Steps

Most construction loans follow the same path. Here's what happens, and when:

How much deposit you need depends on the land and build total. With 20%, you avoid LMI. With less, LMI usually applies unless you use the 5% Deposit Scheme or a family guarantee. Eligible first home buyers can use the 5% Deposit Scheme to build, within the price cap for the land and build combined, and may also get the $10,000 First Home Owner Grant on a new home. A first home loan broker can check which schemes apply to you.

Land and Build

Buying a block and signing a separate building contract. The land loan usually becomes part of the construction loan once building starts.

House and Land Packages

Land and build bought together from one developer or builder. When the land and building contracts are separate, stamp duty is often charged on the land only.

Knock-Down Rebuilds

Demolishing an existing home and building new on the same block. The equity in your land can count towards your contribution.

Owner-Builder Projects

Managing the build yourself. Fewer lenders help, they usually lend a lower share of the value, and you'll need an owner-builder permit.

What Lenders Look For

Lenders take extra care with construction loans, since there's no finished home to secure the loan at the start. Most will want to see:

• A fixed-price contract with a licensed builder
• Approved plans, specifications and building permits
• Proof of the builder's home warranty insurance
• A deposit, or equity in the land
• Income that covers repayments, plus rent if you're renting during the build
• A buffer for variations and unexpected costs

Each lender sets its own construction policy, so treat this as a starting point. We check your build against the lenders most likely to suit it.

Costs and Risks to Plan For

Building comes with a few costs that buying an established home doesn't. Planning for them early keeps the build on track:

Valuation Shortfalls

If the lender values the finished home below what you're paying, you'll need to fund the gap. We look at likely valuations early, so it's not a surprise.

Variations and Extras

Changes you make after signing, or site costs the contract doesn't cover, are usually paid from your own funds. A contingency of around 5% or more of the build cost gives you room.

Rent and Repayments Together

Many people pay rent or another mortgage while their home is built. We factor these holding costs into your budget from the start.

Delays

Weather, supplies and approvals can stretch a build. Most lenders set a time limit for construction, so we check that it suits your builder's schedule.

Why Home Builders Choose Loan Street Finance

Plenty of brokers can arrange a home loan, but fewer are comfortable with construction finance from contract to keys. What brings home builders our way is the care we take with every stage of the build.

If that sounds like the help you'd value, we'd be glad to hear from you whenever you're ready. No pressure and no obligation, just a clear conversation about your build.

Signs a Construction Loan May Suit You

A few signs suggest it's worth talking through your build:

• You've bought land or found a house and land package
• You're comparing builders and want to know your budget
• You want to knock down and rebuild on your block
• You're a first home buyer looking at grants for a new home
• You'd like someone to manage the finance side of the build
• You want to avoid funding gaps between stages

Building your own home should feel exciting, not stressful. The team at Loan Street Finance is here to set up your finance, line it up with your builder and guide you through each stage. Reach out for a relaxed, no-obligation chat whenever it suits you.