Construction loans release funds in stages as the build progresses, and you pay interest only on what has been drawn. We line up the land, the contract and the drawdown schedule up front.
Typically 5-6 stages (slab, frame, external, internal fit-out, completion). The lender confirms progress before each release, and you pay interest only on the amount drawn, not the full loan from day one.
Buying land first and signing a building contract means stamp duty applies to the land only, which is often cheaper than buying an existing home. For example, $300k land + $450k build ($750k total) incurs roughly $8,990 in duty versus roughly $29,240 on an existing $750k home — exact figures depend on NSW rates at the time.
Knocking down and rebuilding, or extending an existing property, can also be funded with a construction loan. Plans, a budget and builder details are normally required.
Typically a land contract or title, a fixed-price building contract and approved plans with a budget. Exact requirements vary by lender, so we check them with you early to avoid back-and-forth.
This is general information only and not personal financial advice. Drawdown stages, document requirements and rates are determined by each lender.
Yes. Stamp duty is only charged on the land component — for example, $300k land + $450k building contract (total $750k) incurs roughly $8,990 in stamp duty; an existing home at the same $750k total price incurs roughly $29,240. The gap is significant, though exact figures depend on the duty rates in effect at the time.
Construction loans are usually charged on the amount drawn, so interest grows as each stage is released. Exact interest and repayment terms are set by the lender.
No. The assessment is free, and no fee if we cannot succeed.
Funds are released in stages and you pay interest only on what has been drawn. Here is how a land-and-build loan works, and why stamp duty can be lower.
You already own the land and want to demolish the old house and build new: how the loan is arranged, what lenders look at, and where budgets blow out.
Free assessment, no fee if we cannot succeed.
