Construction loan
Buyvest mortgage brokers in Sydney specialise in construction loans. A construction loan gives you access to money progressively as you complete different stages of construction, and you have the freedom to design and build a property to suit your lifestyle. Whether you're renovating, knocking down an existing property and rebuilding or starting fresh, our expert team helps you navigate the construction loan process with confidence.
Building a home can be a big project, but it gives you the freedom to get creative and design a property tailored to suit your lifestyle. We compare construction loan options from multiple lenders to find you the best rates and terms for your custom build project. This guide will help you understand the process of building a new home, so you can be in control.
Ready to build your dream home with Buyvest?
Get your free construction loan assessment from Buyvest mortgage brokers and find out how we can help you finance your custom build project.
Free Construction Loan AssessmentWhy use Buyvest mortgage brokers for construction loans?
Access to 35+ lenders
We work with banks, credit unions, and non-bank lenders. Different lenders have different criteria - we match you with the right one.
No cost to you
Lenders pay our commission directly. You pay the same rate whether you go to the bank directly or through us - but with expert guidance included.
Expert construction guidance
Our construction loan brokers understand the complexities of building projects and help you navigate each stage with confidence. We've worked with builders across Sydney and understand the process inside out.
Stage-based funding expertise
Construction loans release funds progressively as you complete each stage. We coordinate with your builder and lender to ensure smooth fund releases at each milestone.
Document preparation support
We guide you through the detailed documentation required for construction loans. Our team helps you gather building contracts, progress schedules, quotes, and compliance documents.
Ongoing support
We stay involved throughout your construction project. From initial approval through to final settlement, our team is here to support you at every stage.
Why choose Buyvest for your construction loan?
Flexible funding structure
Receive funds progressively as each stage is completed. Pay only the interest on funds you've drawn, not the full loan amount, during the construction phase.
Customised to your project
Construction loans are tailored to your specific build. Whether it's a 5 or 6-stage project, we structure your loan to match your builder's progress schedule perfectly.
Variable rate construction loans
Construction loans are structured as variable rate loans during the construction phase. Your interest is calculated only on funds you've drawn, not the full loan amount. Once construction is complete, the loan converts to a standard home loan where you can choose fixed or variable.
Competitive construction rates
We negotiate competitive construction loan rates by comparing options across multiple lenders. Often save clients thousands in interest during the construction phase.
Standard variable home loan
Once construction is complete, your construction loan automatically converts to a standard variable home loan. At this point you can refinance to fix your rate if you choose. We ensure a smooth transition with no delays or additional complications.
Construction loan expertise
Our brokers specialise in construction loans and understand every aspect of building finance. From progress payments to fund releases, stage approvals to final settlement, we guide you through the entire construction loan process with expert knowledge.
Construction loan building stages explained
Your construction loan will typically be structured around 5-6 stages (also called milestones). Each stage releases funds as your builder completes work. Here's what you can expect at each stage.
Deposit
Initial deposit to your builder, typically 5% of the building contract price. This is usually paid before plans are finalized and before formal construction loan approval. You'll need to fund this deposit yourself.
Slab
During the first construction stage, your foundation slab is measured and poured. Your construction loan is drawn to cover this stage after the deposit has been paid. Approximately 15-20% of funds required.
Frame
The exterior frame and walls are put in place. This stage includes support structures, electrical and plumbing conduits, gutters and insulation installation. Approximately 20% of funds required.
Lock-Up
Remaining windows, doors, external walls and roofing are installed. This means you can actually 'lock up' your property and protect it from weather. Approximately 20% of funds required.
Fit-Out
Internal fittings and fixtures are installed - lights, power points, electrical and plumbing fixtures, kitchen, bathrooms and other internal finishes. Approximately 30% of funds required.
Completion
Final stage includes completion of contracted items such as fencing, landscaping and site cleanup. Final detailing, painting and Certificate of Occupancy. Approximately 10% of funds required.
Documents needed for a construction loan application
Have these ready to streamline your construction loan approval process. Most documents can be obtained from your builder.
Building contract
Signed building contract from your builder showing the total contract price, progress payment schedule and all agreed terms. This is the key document for your construction loan.
Progress payment schedule
Detailed schedule showing each construction stage, completion requirements and payment amounts. Usually included with your building contract for the construction loan.
Building plans & approvals
Council-approved building plans with elevations showing your construction design. Required before construction loan commencement. Include any council approval documents.
Builder's insurance
Contract of Works insurance covering your construction project. Must show coverage equal to building contract price and cover your property address. Required for construction loan approval.
Public liability insurance
Builder's public liability insurance with $5 million minimum coverage. Shows expiry date and property address. Mandatory requirement for construction loan approval.
Land contract & quotes
Contract of sale for the land (if applicable) and quotes for any items not in the building contract (pool, landscaping, fencing etc.) for your construction loan valuation.
Your construction loan document checklist
In addition to your loan application documents (evidence of your income, expenses, assets and liabilities), there are other specific documents you'll need. Most of these documents can be obtained from your builder. Here's a checklist to help you through each stage of your construction.
Prior to Formal Approval
- Draft Building Contract or Builders Tender
- Draft Progress Payment Schedule (usually included with Building Contract)
- Draft building plans with elevations
- Receipts for items already purchased (kitchen appliances, etc.)
- Quotes for Out of Contract items (pool, fencing, landscaping, etc.)
- Contract of sale for the land (where applicable)
Prior to Commencement Letter
- Executed and signed Building Contract
- Final Progress Payment Schedule
- Agreed schedule of finishes and specifications
- Council-approved building plans with elevations
- Contract Variations (where applicable)
- Quotes for Out of Contract items
- Builder's Insurance (Contract of Works) - equal to building contract price
- Public Liability Insurance - $5 million minimum
During Construction
- Signed progress payment invoices
- Receipts for items purchased (kitchen appliances, contractor work, etc.)
- Evidence of progress at each construction stage
Before Final Progress Payment
- Final signed progress payment invoice
- Final variation(s) to Building Contract (where applicable)
- Building Insurance Policy (Certificate of Insurance or Home Building Policy Schedule)
- Certificate of Occupancy and Compliance or equivalent
This checklist may not cover all individual circumstances and scenarios. There may be times where the lender may require other documents from you. Our Buyvest mortgage brokers will advise you if this applies to your situation.
Use our construction loan calculators
Understand your construction loan capacity and plan your building budget
How to apply for a construction loan with Buyvest
The construction loan process is straightforward when you work with Buyvest mortgage brokers. Here's how to get approved for your construction loan and start building your dream home.
Discuss your construction project, building plans and budget with Buyvest. We help you prepare building documents and assess your construction loan needs. Our brokers provide expert guidance on construction loan options available.
We review your construction loan documents and compare options across multiple lenders. Buyvest explains your construction loan choices so you make the right decision. We submit your construction loan application to the best lenders for your project.
Once approved, we coordinate with your builder, lender and valuer throughout each construction stage. We ensure smooth fund releases at each milestone and provide ongoing support. Get your construction loan approved and receive continued guidance throughout your build.
Documents required for your home loan application
In addition to your construction loan documents, you'll need standard home loan application documents. Have these ready to streamline your approval process and get pre-approved faster.
Personal identification
Australian passport or driver's license (with photo, full name, DOB, current address), plus citizenship certificate or birth certificate. We keep everything secure and confidential.
Proof of income
Two recent payslips from current employer, or 2 years' tax returns if self-employed. For contract/casual work, employment letters plus Pay As You Go (PAYG) summary.
Financial statements
Latest bank statements (3 months), savings account statements, and internet banking history showing your current financial position.
Existing debt information
Statements for all existing home loans, car loans, credit cards, and personal loans. We need to calculate your full debt servicing capacity.
Rates & insurance
Council rates notice and building insurance documents to verify your property ownership and insurance coverage.
ABN & business documents (self-employed)
ABN registration, 2 years' tax returns, BAS statements, and recent invoices or business statements showing your practice income.
Buyvest construction loan brokers serving Sydney & Australia
Buyvest mortgage brokers help property builders across Sydney and Australia secure construction loans and custom home finance. Whether you're building a new home, renovating or knocking down and rebuilding, our construction loan brokers are here to help you access the best construction loan rates and terms available.
Ryde area suburbs
Greater Sydney regions
Regional NSW
Australia wide
Buyvest construction loan brokers also assist builders across Australia. Contact Buyvest to discuss your construction project and how our brokers can help you secure construction loan finance.
Ready to build your dream home with Buyvest?
Our expert team of construction loan brokers is ready to guide you through every step of your building project.
Free Construction Loan Assessment