Construction Loans in Melbourne
Building or renovating? Construction loans Melbourne wide are structured differently from a standard home loan — funds are released in stages as the build progresses. Best Brokers Melbourne matches you with a licensed broker who knows construction and renovation lending across 50+ lenders, at no cost to you.
Licensed brokers only · Free and no obligation · Build-savvy brokers.
How construction loans Melbourne wide work
With construction loans Melbourne wide, the lender releases money in progress payments — typically at slab, frame, lock-up, fit-out and completion — and you usually pay interest only on the amount drawn so far. That keeps repayments lower during the build. Not every lender handles construction well, so matching you to one that does is half the job.
Projects a broker can match you for
- New builds and house-and-land packages
- Knockdown-rebuilds on an existing block
- Major renovations and extensions
- Owner-builder projects (with the right lender)
What lenders want to see for a construction loan
Construction lending leans heavily on your fixed-price building contract and the lender’s own valuation of the finished home. Lenders want a licensed builder, a clear contract, and council approvals in order before they commit. The smoother that paperwork, the faster your progress payments flow during the build — and a broker who knows construction lending helps you line it up so the funding doesn’t stall mid-project, which is the single most common headache owner-builders and first-time builders run into. Getting the contract and approvals right before you apply is the cheapest insurance against a delayed build.
How it works
- Tell us your situation — a short enquiry: what you’re looking to do, when, and where. No documents, no credit check.
- We match you with a broker — your details go to one licensed Melbourne mortgage broker suited to your enquiry, who contacts you directly.
- The broker takes it from here — they compare lenders, explain your options in plain English, and guide you through to settlement.
Building your first home? See first home buyer home loans for grants that may apply to new builds. Renovating an investment? See investment property loans. Or start from the main Melbourne page. For neutral background on building costs, the Government’s Moneysmart site is a good free reference.
Frequently asked questions
How are construction loans Melbourne wide paid out?
In stages — the lender releases progress payments at set build milestones, and you typically pay interest only on what’s drawn so far, which keeps repayments lower during the build.
Can I get a construction loan for a knockdown-rebuild?
Yes. Knockdown-rebuilds, new builds and major renovations can all be financed with construction lending. A broker matches you to a lender comfortable with your project type.
Is the construction loan broker service free?
Yes. Best Brokers Melbourne is a free referral service; brokers are generally paid by the lender, disclosed to you.
Do I pay full repayments during construction?
Usually not. With most construction loans you pay interest only on the funds drawn so far, so repayments start small and rise as the build progresses, then convert to a normal principal-and-interest home loan once the build reaches completion.
Get matched with a broker
Best Brokers Melbourne is a free referral service — we’re not a mortgage broker and don’t give credit advice. We pass your details to one licensed broker, and may receive a referral fee at no cost to you.
This page is general information only and is not financial or credit advice.