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(02) 9173 7220
Clear Finance Logo
(02) 9173 7220
(02) 9173 7220

Construction Loans

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Building Your Home? We’ll Help You Build the Finance to Match.

At Clear Finance, we specialise in construction lending, helping you secure the right structure, understand the process, and manage each step of your finance as your new home takes shape.
Construction loans are different from standard home loans. They’re released in stages as your build progresses, and the structure behind them matters. With the right advice, construction lending can be simple, strategic and stress-free.

How Construction Loans Work

Unlike standard home loans where you receive the full loan amount upfront, a construction loan is drawn down in stages as each milestone of the build is completed. These stages are often referred to as progress payments.

Typically, progress payments are made at the following build stages:
  • Slab laid
  • Frame completion
  • Lock-up stage
  • Brickwork / exterior completion
  • Final or practical completion
During construction, many lenders offer interest-only repayments, which later revert to principal and interest once the home is complete and the full loan amount has been drawn.

What You Need to Apply

To qualify for a construction loan, lenders typically require:
  • Council-approved building plans
  • A fixed-price tender from a licensed builder
  • Your own savings or usable equity (you must use this first before loan funds are drawn)
Additional required documents may include:
  • Fully signed building contract and specifications
  • Builder’s licence and relevant insurances (e.g. Home Warranty Insurance, Public Liability)
  • Building Services Authority Insurance (QLD only)
  • Evidence of property insurance showing the lender as mortgagee
  • Occupation Certificate/Permit once the build is complete
We’ll help you gather and submit all the necessary paperwork and guide you on what to expect at each stage.

Progress Payments

Each time a stage of the build is completed, your builder will issue a progress invoice. The lender may conduct a progress inspection and request a signed progress payment form before releasing the funds from your loan account.
As progress payments are drawn, your monthly mortgage repayments will increase starting low and rising gradually until the final amount is drawn down at completion.
Things to Keep in Mind

Never sign a building contract unless you fully understand it:

Always review the terms with a legal professional and ensure
your builder has the required licences and
insurances.

All changes to your contract must be approved by the lender:

Speak to your mortgage broker before proceeding with any variations to avoid approval issues or delays.

Upon completion

The loan reverts to your chosen long term product, typically a standard variable or fixed
home loan.

First Home Buyer Building?

Yes — many clients refinance to unlock equity for renovations, investments or debt consolidation. We’ll assess your current position and advise you on the smartest way forward.
Tools to help you plan:

Frequently Asked Questions

What’s the maximum I can borrow for a construction loan?

Some lenders allow you to borrow up to 95% of the total property value, including the land and construction costs. LMI may apply above 80%.

What do I need before construction starts?

You’ll typically need a fully signed building contract, approved plans, insurance documents, and builder’s licences. Your broker will guide you through every requirement.

What’s required when the build is complete?

You’ll need an Occupation Certificate (or Occupation Permit) issued by your local council. Once this is submitted, your construction loan will switch to the long-term loan product you selected.

Is refinancing always a good idea?

Not necessarily. We’ll only recommend refinancing if the savings and benefits outweigh the costs. Every situation is different — and we’ll give you a clear comparison.

Can I make changes to my building contract during construction?

Yes, but only with lender approval. Always speak to your broker before requesting any variations to avoid issues or delays in funding.

Have more questions?

Visit our FAQ’s page to find out more or ask one of us directly?
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Ready
to start
Building?

Whether you’re a first-home buyer or experienced investor, we’ll help you structure your construction loan the right way and guide you through every stage of the build.
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