Construction Loans

We'll help you fund your new build or renovation with a Construction Loan

Getting a construction loan is a crucial step for those looking to build their dream home or undertake a significant renovation project. Construction Loans are specifically designed to provide funds in stages as the construction progresses, rather than as a lump sum upfront. Getting a construction loan can be complex, as in addition to understanding your financial situation, banks will generally need to understand the details of the build before providing approval. We can help you understand the process and make sure you have all the documentation required before submitting an application - saving you valuable time in getting your build underway.

Construction Loans operate differently to other types of loans with the funds being provided to pay builders and suppliers as the construction progresses. This means that you'll only pay interest on the funds you've accessed rather than the whole loan. Understanding how a Construction Loan operates and how it enables you to build or renovate is critical and we have the expertise to make sure you understand the process and get the right loan for you.

We're a proud member of the Mortgage and Finance Association of Australia and can help with Construction Loans right across Australia. If you're looking to build or renovate, we have the expertise and experience to guide you through the process and make the right choice.

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Getting a Construction Loan

Step 1: Let's Map It Out

Building a home starts with a chat about your goals, your land (or plans to buy some), and your budget. We'll take the time to understand your vision and how your finances stack up, then walk you through how construction loans work, including progress payments, loan structure and timing.

Step 2: Crunch the Numbers

We’ll dive into your financials (income, expenses, savings, debts and credit history) to work out your borrowing capacity. If you're eligible for any government support like the First Home Owner Grant or building-related concessions, we’ll factor that in too.

Step 3: Choose Your Lender (and Loan)

Not all construction loans are built the same. We’ll shortlist lenders who suit your needs, explain the loan features in plain English, and help you choose the right one, whether it’s fixed, variable, or offers flexibility like redraw or offset during the build.

Step 4: Pre-Approval & Paperwork

Once we’ve found the right fit, we help gather the necessary documents like building contracts, plans, quotes and council approvals, along with your financial info. Then we submit your application and guide you through pre-approval, so you're ready to go when the build begins.

Step 5: Loan Approval & Building Begins

When your loan is approved, the lender will release funds in stages (called progress payments) as the build moves forward. We’ll stay in touch with you, your builder, and the bank throughout to make sure everything flows smoothly at each milestone.

Step 6: From Build to Beyond

When your build is complete, your loan usually rolls into its long-term repayment phase. We’ll review the setup to make sure it still suits you and we’re always here if you want to refinance, upgrade, or just ask a question. You're never on your own with Mortgage Lane.

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Our Latest Reviews

Max H

Chandelle helped me figure out how much I can afford to borrow and explained a lot of finance stuff in a way that made sense. I was expecting the whole process to be difficult but the only hard part was finding all my paperwork and documents! After that, she actually made it feel easy. I'm now pre-approved and excited about buying my first home!

Joanna

Im so pleased to have been recommended to Chandelle by a mutual friend, she listened to me and offered me advice which actually talked me out of buying a property that turns out was not suitable for me. I don't know that many super honest people who puts others interests before their own, but that was certainly the case here. Whilst I havent yet bought, I will 100% be going back to see Chandelle because she has proven to be a genuine, caring and smart girl. Thanks Chandelle!

We work with Australia's biggest lenders

Frequently Asked Questions

What’s pre-approval, and why does everyone talk about it?

Pre-approval is your golden ticket, it shows sellers and agents that you’re serious (and ready).
At Mortgage Lane, we help you get pre-approved quickly so when the perfect place pops up, you're ready to take action!

What extra costs should I know about?

Good question, because it's not just the deposit!
There’s stamp duty, legal fees, maybe a valuation fee, and a few other bits and pieces.
We’ll lay it all out for you in plain English, with no scary surprises along the way.

How much deposit do I need?

In most cases, you’ll need somewhere between 2% and 20% of the property price.
Bigger deposit? Great! It can help you avoid extra fees like LMI.
Smaller deposit? No stress, we’ll work through the smartest options together to get you on the road.

How much time will it take?

Short answer: Thankfully - very little of your time!
Long answer: Pre-approval can be a few hours to a few days and full approval usually occurs within 1–2 weeks (depending on the lender, loan conditions and paperwork).
The important part is that we do the heavy lifting, nudging (or pushing) lenders to keep things moving and keep you updated so you’re never left wondering what’s next.

What documents do I need to get started?

Think of it like a speed dating 'get-to-know-you' event: ID, payslips, tax returns, bank statements, details of debts and savings.
We’ll send you an easy step-by-step list so you know exactly what’s needed - and we’re always here to help if you get stuck.

What is Lenders Mortgage Insurance (LMI), and do I need it?

LMI protects the bank, not you. (Annoying, we know.)
It usually kicks in if you have less than a 20% deposit.
We’ll show you how it works, when you can avoid it, and what creative strategies we can use to save you money where possible.

How much can I borrow?

Think of it like shopping with a set budget - your borrowing power depends on your income, expenses, and a few other things like existing loans.
At Mortgage Lane, we crunch the numbers early, so you know exactly what you can comfortably afford before you even start scrolling through dream homes.

Why use a mortgage broker instead of going straight to a bank?

Because a bank can only tell you about their products.
We provide you with access to a broad network of lenders and loan solutions finding the best lender and loan for your needs, not theirs.
Plus, we take the pressure off and advocate for you every step of the way. And our service comes at no cost to you!

What happens after I’m approved?

That’s when the real fun begins!
You’ll move through to settlement (we’ll guide you through it), and before you know it, keys in hand, dreams unlocked.
And we’ll still be right here, checking in, helping with future questions, and making sure you always feel supported beyond settlement.

Have a question we didn’t cover? Reach out anytime, your journey is personal and we're always happy to help.

What’s the difference between fixed and variable rates

Fixed rate = same repayments, no surprises.
Variable rate = repayments can move up or down with the market.
Which one's better? It depends on what you value more - certainty or flexibility.
We’ll help you figure out what feels right for your journey (and your nerves).

Mudgee, NSW

0450 901 478

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The Trustee for CJL Family Trust ABN: 36 704 139 887. Credit Representative #569174 is authorised under Australian Credit License #389328

Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. This testimonial was given by our customers. They are individual experiences of our customers that have used our service. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Calculators are illustrative only and calculated based on the accuracy of the information entered by you. They are not a guarantee of an offer or acceptance of loan eligibility.

At Mortgage Lane, we're Mortgage Brokers helping clients Australia-wide fund their new build or renovation with a Construction Loan