Loan Types

HomeLoan TypesConstruction Loans

Construction Loans

Construction loans are really another form of a standard home loan which rolls out in stages as the different phases of your land purchase and house construction unfold. While you can readily get a loan for land purchase alone, if you are buying land with a view to construction and require funds for the land purchase, Acquired Home Loans will set up the entire approval process for you from the outset. Our professional home loans consultant has access to over 200 loan products and will work with you to find the one that best suits you all in one simple meeting. At Acquired it is all about choice.

There are typically five loan stages

  1. Pre approval for your land and/or house purchase
  2. Land purchase and formal approval for your land settlement
  3. Formal loan approval for the construction portion of your loan
  4. Construction commencement and loan drawdown in stages
  5. Construction completion and switch to Principal and Interest home loan (if applicable)

Having a pre-approval from Acquired Home Loans gives you the ability to say “YES” and the confidence of knowing exactly how much you can afford to spend and how much it will cost.

Construction Loan Approval
For construction approval, you will be required to present a Bank Pack provided by your builder, this includes the following:

  • Your fixed-price building contract with a licensed builder, including proof of builder’s insurance, current for the construction period. (If you are an owner builder, you will be required to present detailed costings including quotes and all relevant insurances)
  • Your council approved plans and specifications of the proposed residence


Construction loans require a level of flexibility and are therefore usually variable rate loans and typically interest only but if you require peace of mind we do have a lender offering a fixed rate construction loan at a very competitive rate.

Progress Payments
Once progress payments commence, your financier will require inspections at each payment release point. Your building contract should nominate the number of progress payments for the construction, but there are typically four (slab or floor, framework, lock up and completion).

During the construction period, you would typically make repayments monthly on an interest-only basis.

Construction Completion Loan Switch
Once construction is complete, you will then finalise how you want to repay your loan. You might then switch to a principal and interest loan and choose to repay your loan in monthly, fortnightly or weekly installments.

The home loan market is very competitive. There are literally thousands of home loan options to choose from and the fastest way to get to the best decision for you is to get assistance.

Call us today on 1300 400 500 or send us an email and one of our professional home loan consultants will be in touch.


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