Specialist lending
Construction and Knockdown Rebuild Loans
Construction loans work differently. The lender pays your builder in stages as the build progresses, and you pay interest only on what has been drawn. We make sure your contract, budget and lender match, so there are no gaps or surprises halfway through the build.
Homestead is a mortgage broker, not a lender. Our service costs you nothing.
How it works
- 1
We review your land, building contract, plans and budget.
- 2
We match you with lenders comfortable with your builder and contract type.
- 3
The lender values the finished home and approves the loan in progress payment stages.
- 4
As each stage completes, funds are released to the builder and repayments adjust.
Who it suits
- Buyers building on vacant land
- Owners doing a knockdown rebuild
- Buyers of house and land packages
- Owners taking on a major renovation or extension
What lenders look at
A guide only. Each lender sets its own criteria, and they change.
- A fixed price building contract from a licensed builder
- Council approved plans and specifications
- Funds to cover any gap between the loan and total cost
- Income to service the loan once fully drawn
Frequently asked questions
During the build you usually pay interest only on the amount drawn so far. Once the home is complete, the loan typically moves to principal and interest repayments.
Variations not covered by the loan need to be paid by you, usually before the lender releases further funds. We help you plan a buffer.