Construction Financing

Build with confidence using tailored construction financing from Loanworx.

Whether you’re knocking down and rebuilding, undertaking a major renovation, constructing your dream home, or working on a multi-dwelling development, getting the finance structure right is critical. Construction loans work differently from standard home loans, and lender policies can vary widely.

At Loanworx, we help you secure construction loans that suit your project, your budget, and your long-term plans. We compare options from more than 40 lenders across Australia and explain everything in clear, practical language.

Why Choose Loanworx for Construction Financing?

Construction loans involve more variables than standard mortgages, and not all lenders assess them the same way. Getting the structure right early can make a significant difference to approval speed and cash flow during your build.

Loanworx specialises in construction financing, helping you secure the right loan and lender to support your project from start to finish — with clear guidance, steady progress payments, and expert support throughout the build process.

How We Help with Construction Loans

We support a wide range of construction scenarios, including:

Knockdown rebuilds
Using existing equity and a construction loan to replace an older home with a new build.
Major renovations and extensions
Funding structural changes, second-storey additions, and significant upgrades.
New home builds on vacant land
Buying land and building later, or arranging land + build at the same time.
Dual occupancies and townhouses
Small development or investment projects where multiple dwellings are built on one block.
Owner-builder projects
Helping you understand which lenders will consider your build and what extra documentation they require.

We’ll review your building contract, plans, and costings, then recommend a construction financing strategy that fits your budget and risk profile.

How Construction Loans Work

A construction loan usually releases funds in stages rather than as a single lump sum. Typical stages can include:

Deposit / slab
Frame
Lock-up
Fix-out
Completion

During construction, many lenders only charge interest on the amount drawn down at each stage. Once the build is complete, the loan usually reverts to a standard principal and interest structure (or your chosen long-term setup).

Loanworx will walk you through the progress payment process, help you understand how your repayments will change at each stage, and coordinate with your lender and builder so funds are released on time.

Why Plan Your Construction Finance Early?

Construction loans involve more checks and documentation than standard home loans. Planning early can help you understand what’s required, structure your finance correctly, and avoid delays once your build is ready to move forward.

Pre-approval timeframes vary depending on the lender and project complexity, but many clients receive an outcome within a few weeks once all required information is provided.

Discover a smarter way to fund your build.

Things You Should Know About Construction Home Loans

Construction home loans can offer more control and flexibility during your build, but they’re not the same as a standard mortgage. It’s important to understand both the benefits and the potential challenges.

Potential Benefits:

Interest is usually charged only on the funds drawn at each stage
Staged drawdowns can help manage cash flow as work progresses
Loan structures tailored to owner-occupiers, investors, and developers
Ability to use existing equity to help fund a knockdown rebuild or new build
Options for funding single homes, duplexes, townhouses, and small multi-unit projects
Support from a construction finance specialist who understands lender policy

Things to Watch:

Lenders require detailed contracts, plans, and cost breakdowns
Budget changes mid-project can trigger reassessment or extra conditions
Some lenders are restrictive with owner-builder loans
Interest-only construction periods often roll to principal & interest at completion
Cost variations or delays can impact valuations and approval conditions
There is more paperwork and more steps than with a standard home loan

We’ll help you anticipate these issues and prepare the documentation your lender is likely to need.

Banks and Lenders We Work With

Loanworx works with a wide panel of Australian banks and specialist construction lenders. This gives you access to both mainstream and more flexible options, rather than being limited to a single bank’s policy.

We use our experience and lender relationships to find a construction financing solution that suits your project size, location, and timeframes.

Our Construction Financing Process

Getting construction finance doesn’t have to be complicated. Our four-step process is designed to keep your project moving smoothly.

Step 1: Book a Free Consultation

We review your building plans, financial position, and project goals.

Step 2: Compare the Right Options

We compare a range of construction loans and outline the pros and cons of each structure for your situation.

Step 3: Get Pre-Approval

We help you secure pre-approval so you and your builder can plan with confidence.

Step 4: Buy & Settle

We manage the settlement process and work with your lender during the construction phase to ensure progress payments are released on time.

Speak to a Construction Finance Specialist

Frequently Asked Questions

How do construction loans work?

Construction loans release funds in stages as your builder completes each part of the project. You’re usually charged interest only on the amount drawn at each stage.

What’s the difference between a construction loan and a standard home loan?

With a standard home loan, you receive the full amount upfront. With a construction loan, the loan is drawn down progressively, and your repayments adjust as more funds are released.

Do I pay interest on the full loan amount straight away?

No. In most cases, interest is only charged on the amount that has been drawn down so far.

Can I use a construction loan for renovations or extensions?

Yes, many substantial renovations and extensions can be funded with construction finance, depending on the scope of works and lender policy.

Are construction loans harder to get approved?

They require more documentation and a bit more coordination, but with a specialist broker guiding you, the process becomes much more manageable.

Ready to Start Building with Loanworx?

Whether you’re a first-time builder or an experienced developer, Loanworx can help you set up construction financing that supports your project from start to finish.

Call us on 1300 562 696 or speak with a construction finance specialist today.

Talk to Us

Ready to talk finance?

It’s what we do best. Call us now on 1300 562 696 or fill in the below form to speak to one of our highly skilled brokers.