✦ Construction Loans

Build your dream home with the right finance.

Construction loans work very differently from standard mortgages. We explain every stage, structure your loan correctly from the start, and manage the process through to completion.

Building a new home is an exciting but complex process - and the financing is unlike anything you'll encounter with a standard purchase. Construction loans are drawn down in stages as your build progresses, which means your interest costs are lower during construction but the process requires careful management. StepUp Wealth guides you through every stage - from land purchase and council approval to the final progress payment and conversion to a standard loan.

What We Offer

How we help you succeed

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Construction Loan Structuring

We structure your construction loan to align with your builder's progress payment schedule - ensuring funds are available at each stage without unnecessary interest costs.

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Land & Construction Package

If you're purchasing land and building, we coordinate both the land loan and construction loan - often combining them into a single facility.

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Progress Payment Management

We explain the 5 standard construction stages (slab, frame, lock-up, fixing, completion) and ensure your drawdowns are timed correctly.

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Lender Policy Navigation

Construction lending policies vary significantly between lenders. We know which lenders are most flexible, competitive, and reliable for building projects.

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Builder Contract Review Support

We work alongside your conveyancer to ensure your building contract aligns with lender requirements - avoiding costly delays during the approval process.

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Post-Construction Conversion

Once your build is complete, we review the market and transition your loan to the most competitive ongoing product - not just the lender's default rate.

The Process

How it works, step by step

Pre-Approval & Planning

We assess your borrowing capacity, review your building contract, and obtain pre-approval before you commit to your builder.

Formal Approval & First Drawdown

Once council approval and a fixed-price contract are in place, we submit for formal approval and coordinate the first progress payment.

Construction & Final Conversion

We manage each progress payment through the build and convert your loan to the best available ongoing product at completion.

FAQ

Common questions answered

A construction loan is drawn down in stages (progress payments) as your build progresses, rather than as a lump sum. You only pay interest on the amount drawn, which keeps your costs lower during construction. Once the build is complete, it converts to a standard principal & interest or interest-only loan.

Most lenders require a fixed-price contract from a licensed builder before approving a construction loan. This protects both you and the lender from cost overruns. We'll confirm the exact requirements for your chosen lender.

Typically: 1) Slab/base (10%), 2) Frame (20%), 3) Lock-up (20%), 4) Fixing/internal fit-out (25%), 5) Completion (25%). The exact percentages vary by builder and contract. We'll align your drawdown schedule with your building contract.

Yes - if you own land (or are purchasing it) and plan to demolish and rebuild, a construction loan is the appropriate product. We'll assess whether you need a separate land loan or can combine both into a single facility.

If costs exceed your approved loan amount, you'll need to fund the difference from savings or negotiate with your lender for an increase. This is why a fixed-price contract is so important. We'll help you build in a contingency buffer from the start.

Also Available

Explore our other services

Ready to get started?

Book a free, no-obligation strategy call. We'll review your situation and map out the best path forward.

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