Funds in stages
Drawdowns against each milestone, not one lump sum upfront.
CONSTRUCTION HOME LOANS
Construction home loans.
Funds released in stages.
Valued on the finished home.
Whether it’s your first home, a knockdown rebuild, an investment or a major renovation, a construction loan releases funds as your build progresses, and the lender values it on the completed home. We compare 40+ lenders on your build and site, then manage the draws, valuations and builder paperwork so the money is there at each stage. Personal guidance from Ausfirst Lending Group in Caloundra.
Excellent · 35 Google reviews
From first plans to completion.The same broker throughout.
DRAWNstage by
stage.
stage.
40+Lenders on our panel
50+ yearsCombined lending experience
$0Broker fee for home loans
Local careQueensland-wide
NOT A STANDARD HOME LOAN
A construction loan
works differently.
It draws down in stages as your build hits milestones, and the lender assesses it on the completed home, not the land or today’s spend. That changes what you provide, how the valuation works and how your cash flow runs during the build.
40+ lenders
Matched to who lends comfortably on your build type and site.
One broker throughout
The same person from first plans to final completion.
Get the structure right upfront. It’s what keeps the money flowing when the builder invoices.
Start with a free chatHOW CONSTRUCTION LOANS WORK
The mechanics that
make them different.
What lenders assess, and how the money is released.
LVR and deposit
Sometimes up to 95%. Eligible first home buyers may build with 5% under a government scheme.
Valued on completion
Lenders use the lower of land plus build cost, or the valuer’s completed estimate.
A drawdown window
Commonly around 24 months to draw all funds. Vacant land may need a land loan first.
Investment builds
Some lenders consider projected rent as part of the assessment.
AN EXAMPLE
Which value does the lender use?
| Item | Amount |
|---|---|
| Land | $350,000 |
| Build contract | $450,000 |
| Valuer’s completed estimate | $780,000 |
| Value the lender uses | $780,000 (the lower) |
Illustrative. A valuation below cost means you contribute more.
Check my numbersKNOW YOUR NUMBERS
How much will you
need to contribute?
If the valuer’s completed estimate comes in below your land and build cost, the lender lends against the lower figure, and you cover the gap.
We check this before you sign, so the shortfall doesn’t surprise you at the frame stage.
- Land value or purchase price
- Fixed-price build contract
- Valuer’s completed estimate
- The lender’s maximum LVR
YOUR BUILD, AT A GLANCE
What will you need to put in?
$100k$1.5m
Illustrative funds you contribute$98,000
Value the lender uses$780,000
Maximum loan$702,000
Illustration only, not a borrowing assessment. Excludes stamp duty, fees, LMI and variations. Lender policies on LVR and valuation vary.
Check my actual optionsCOMPLETION AND CONVERSION
From final payment
to a standard loan.
When the build is complete, the loan usually converts to a standard home loan. The lender may ask for final documents and a last inspection.
BEFORE THE FINAL PAYMENT
Walk through with your builder.
Note any outstanding work before the final payment is released. It can help avoid disputes after handover.
We coordinate the final inspection and paperwork with your lender.
Grants and smaller deposits
First home schemes and grants can make a new build achievable with a smaller deposit.
See low deposit optionsFewer lenders, tighter terms
Building it yourself narrows the lender choice and usually needs a bigger deposit.
Drawdown periods, LVRs and valuation methods vary by lender.
Let’s match your build to the right lender. Rather than finding out at the frame stage that it doesn’t suit.
Check my next stepsTHE PROGRESS-PAYMENT STAGES
Six stages,
each one checked.
Your loan is released in stages aligned to construction milestones. The lender may inspect before releasing the next payment.
PREPARATION
Deposit
The initial funds to get the build under way.
BASE
Slab
The foundation is laid.
FRAME
Frame
The frame of the home goes up.
LOCK-UP
Weatherproof
Walls, windows and roof go on.
FIT-OUT
Fixtures
Cabinetry, fixtures and fittings are installed.
COMPLETION
Handover
Final works finished and keys handed over.
WHAT LENDERS LOOK FOR
A clear application,
ready early.
Accurate documentation, prepared upfront, keeps the process and the draws moving.
Your finances
Consistent income, savings history and good credit conduct.
Plans and contract
Fixed-price contract, detailed plans, builder’s licence and budget.
Completed valuation
An independent valuation of the finished home.
Paperwork early
Your records and the builder’s documents ready upfront.
WHY BUILD WITH AUSFIRST
More moving parts.
One broker managing them.
Construction lending has more moving parts than a standard loan.
We know construction lenders
Policies on draws, valuations and sites vary widely.
We manage the draws
Progress payments, valuations and builder paperwork.
The same person
You work directly with Richard Luke, start to finish.
No direct cost
Lenders pay us on settlement. We disclose any fees upfront.
A major renovation can be funded on a similar staged basis.
Explore renovation loans
Richard LukeFounder · Ausfirst Lending Group
WHAT MAKES AUSFIRST DIFFERENT
Your build is personal.
Your broker should be, too.
You’re looked after by someone who treats your financial success as his own.
You deal directly with Richard, the founder, who brings over 30 years of lending experience across Queensland. He personally oversees every client’s loan.
You’re not passed between departments: one person from first plans to completion.
Direct access to RichardDraws and valuations managed2024 Sunshine Coast Business Awards finalist
Speak with RichardMore about RichardWHAT OUR CLIENTS SAY
Good people.
Great support.
ExcellentBased on 35 Google reviews
Google review
“I would describe Richard and Ausfirst Lending as friendly, insightful, prompt and diligent. A pleasure to deal with.”
Google review
“Debbie made the process of buying a new house frictionless, by providing excellent support throughout”
Google review
“I received very prompt responses to all of my questions and the team ensured that my application was processed in a timely manner. The service was brilliant!”
Excerpts from client reviews displayed on Ausfirst’s website. These reflect individual experiences.
LET’S CLEAR THINGS UP
Construction loans.
Real questions.
The questions we’re asked most about funding a build. Every project is different, so we’re happy to talk through the detail.
Ask about my buildHow is a construction loan valued?
On the completed home. Lenders usually use the lower of land plus build cost, or the valuer’s completed estimate.
How much deposit do I need to build?
Some lenders go up to 95% LVR. Eligible first home buyers may build with 5% under a government scheme.
How long do I have to draw the funds?
Commonly around 24 months, though it varies by lender. Delays beyond that may need an extension.
Do I need a land loan first?
If you’re buying vacant land to build later, often yes. We can structure the land and construction loans together.
Can I count rent on an investment build?
Some lenders consider projected rental income as part of the assessment.
What happens when the build is finished?
The loan usually converts to a standard home loan after a final inspection and documents.
START WITH A CONVERSATION
Talk to a construction
lending specialist.
Tell us about the land, the builder and the budget. We’ll show you how to structure the finance and which lenders suit it.
Valuation shortfall checked upfront
Progress draws managed
Direct access to Richard
Visit our Caloundra office
Suite 3/74 Bulcock St, Caloundra QLD 4551
Monday–Friday, and by appointment
YOUR FREE CONSULTATION
Tell us about your build.
The land, the builder and the budget.
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