Construction Loans

Flexible construction finance for 1-2 residential dwellings.

Construction Loans

Our construction loans suit borrowers looking to complete construction of a single dwelling right through to small-medium development projects.

Our highly competitive construction loan product is suitable for the construction of 1-2 residential dwellings.

Our flexible construction loan supports both full document and low document loan types and can accommodate single dwelling builds for new homes, investment properties and or dual occupancy townhouses/villas.

Our construction loans work on a progressive draw down basis, usually in line with your domestic building contract.

Once the dwelling(s) are complete the residential construction loan converts into a standard home or investment loan.

Talk to one of our specialist lending managers today about our flexible construction loan products can help you build your property goals.

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Construction Loan Features

Our highly popular construction loan products come with flexible features and competitive rates tailored to your unique situation.

  • Purchase up to 70%
  • Refinance up to 70%
  • Full doc & low doc options
  • Construct 1-2 residential dwellings
  • No mortgage insurance
  • No credit scoring
  • Vacant land considered
  • Credit impairments considered

Note: All applications are subject to normal credit assessment and loan suitability criteria. Terms and conditions, fees and charges apply. Minimum loan advance is $250,000.

Construction Loan Benefits

Here are some of the benefits of our popular construction loan products.

  • Construct up to 2 dwellings
  • No mortgage insurance
  • Full doc & low doc options
  • Individually tailored solutions
  • Qualified & experienced lending managers
  • Qualified & experienced lending managers

Qualifying for a Construction Loan


You can provide a fixed priced building contract or quote from a licensed builder.


Ensure you have sufficient funds to contribute at land settlement.


A4 plans and project specification required.

Construction Loan Progress Draws


Base Stage


Frame Stage


Lockup Stage


Fixing Stage



Lending Calculators


Repayment Calculator

Estimate your loan repayments to calculate your regular commitment.



Borrowing Power

Discover your borrowing power, the first step to getting the right loan.



Stamp Duty

Calculate the amount of tax you'll pay on any property purchase or transfer.



Why Redrock?

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Loan Flexibility

We specialise in mortgages for people who need loan flexibility.

Loan Options

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Construction Loan FAQs

Yes, we can accomodate a conditional approval for a construction advance with a fixed price quote from a licensed builder in lieu of a completed building contract.

This is a common issue, we would strongly suggest that you never ever start a building project without a formally approved loan to cover at the very least the full amount of your building contract. We can only assist with a loan to complete a partially completed property if the construction project is at fixing stage.

Typically, a construction loan will be based on whichever of the following is the lessor: hard costs (land value plus building contract sum inc gst) or the on completion value of the dwelling(s).

We can assist with a construction advance, but we are unable to finance any demolition or works that are not directly attributed to property improvements. This is because they do not directly relate to the security that is being financed therefore the land would need to be cleared at your own cost.

Depending on when you are looking at commencing construction after settlement, we can assist with both the land and construction advance within one loan application. Typically to complete this we would require that construction commence within 3 months of settlement. If you are not ready to construct this soon after purchasing your land, we can assist with vacant land finance in some instances.

Purchase of land for construction;
Refinance existing loan (secured by vacant land) with intention to construct immediately;
Construct a residential property on land already owned;
Construct a maximum of 2 residential securities on one title.

When part of the borrower’s equity involves the First Home Owners Grant the borrower must be in a position to provide the equivalent amount of the Grant at settlement, as the Grant funds will not be available until the slab or footings have been completed.

Alongside the progress payment schedule are progress inspections that confirm the work has been completed to plan and payments can be released to the builder.  These are usually required to be completed by the approved valuer. Typically these inspections will be at a Slab, Frame or Roof, Lock-up and Practical Completion stages.

Construction parameters do vary on a case by case basis, however generally the following will apply.

  • Construction is required to commence within 3 months of settlement.
  • Construction is required to be completed within 15 months of settlement.
  • Borrowers are required to use their full financial contribution at settlement i.e. at purchase of vacant land. This contribution is to be based on the LVR of the ‘on completion’ valuation.

Prior to construction loan approval you will need to provide the following;

  • Copy of executed Fixed Price (inclusive of GST) building contract from a licensed builder (not owner builder) executed in standard acceptable format.
  • Copy of Council approved plans and specifications;
  • Evidence of Construction All Risk Insurance (including public liability) from the builder with a Certificate of Currency.
  • A copy of the Builder’s insurance covering the subject property during the course of construction;
  • Copy of certificate of registration of the builder

If the loan is only funding a portion of the cost to construct the property, you will need to contribute your own funds before the draw-down of loan funds.

Each progress payment request must be made using the applicable authority form and must be signed by all borrowers.  All progress payments are paid directly (via EFT) into the builder’s bank account usually within 24 hours after satisfactory progress inspection report (if applicable) and a signed progress payment authority form. A copy of the builder’s invoice must accompany each progress payment authority form.