A construction loan is different from a standard home loan. Rather than receiving a lump sum, funds are released in stages as your builder completes each phase of construction. This means you only pay interest on what has been drawn down at any given time — which can significantly reduce your interest costs during the build period.
Common Challenges
What's Included
Our Process
Why Choose Wiseman Financial?
Frequently asked questions
What are the stages of a construction loan drawdown?
Typically: slab (foundation), frame, lock-up (roof and walls), fit-out (fixtures and fittings), and completion. The exact stages depend on your building contract.
Do I need to own the land first?
Not necessarily. Many lenders allow you to finance land and construction together in a single package. However, if you already own the land, it may form part of your equity contribution.
What if my build goes over budget?
This is where careful planning matters. We recommend a contingency buffer in your loan amount. If costs increase significantly, you may need to negotiate with your lender or builder — we help guide this conversation.
Can I be an owner-builder?
Yes, though owner-builder loans are assessed differently and typically require you to hold an owner-builder permit. Fewer lenders offer these products. We know which ones do.